Bitcoin fell to a three-week low over the weekend as a surge in U.S.
Treasury yields sent ETF outflows to their worst level since late January and drove more than $670 million in liquidations across crypto markets
The 10-year U.S. Treasury yield reached 4.63% on Sunday night—its highest since February 2025—up 70 basis points since the Iran War began, according to The Kobeissi Letter post Monday. The move puts yields four basis points above the level that prompted President Trump’s 90-day tariff pause in April 2025.
With U.S. mortgage rates nearing 7% and odds of a rate cut this year collapsing to 2%, “the U.S. bond market is collapsing in real-time,” the post read. The pressure is reaching crypto through an increasingly institutional transmission channel, according to Diego Martin, CEO of Yellow Capital. “Geopolitical shocks no longer hit crypto directly the way they once did,” Martin told Decrypt. “They hit Treasury yields, which hit risk appetite, which hits ETF flows, which hit Bitcoin. The transmission is more institutional now.” U.S. spot Bitcoin ETFs recorded their largest weekly outflow since late January, Alex Thorne, head of firmwide research at Galaxy, tweeted Monday.