A surge in oil prices, stronger U.S. business activity and a weak five-year Treasury auction drove borrowing costs higher, adding pressure to crypto markets and sending Dogecoin to the biggest losses among major tokens.

Bitcoin was trading around $83,900 on Thursday morning in Asia, down more than 2% over 24 hours after briefly rising toward $87,300, CoinDesk data showed. The 10-year U.S. Treasury yield climbed 15 basis points on Wednesday to close at 5.11%, according to Treasury data.

Dogecoin dropped 7% to just above $0.09. Zcash, XRP and HYPE declined between 5% and 6%, while Ether, Solana and BNB each lost 2% to 3%. TRX was largely unchanged.

The initial move came from the oil market, where Brent crude rose more than 4% to almost $104 a barrel. The rally ended a six-day decline that had previously helped ease concerns about inflation.

U.S. economic data added to the selling pressure. S&P Global’s preliminary business survey showed U.S. output expanding at its fastest pace in more than five years. The composite index rose to 58.4, its highest reading since July 2021.

Later, a $70 billion Treasury auction of five-year notes attracted limited demand. The notes were sold at a 5.033% yield, the highest auction yield since 2006 and approximately 3 basis points above their pre-sale market level. The premium indicated that investors wanted additional compensation for purchasing the debt.

Higher Bond Yields Pressure Bitcoin

Rising Treasury yields can make non-yielding assets such as bitcoin less appealing while simultaneously increasing the cost of financing leveraged trades. Bitcoin recorded its sharpest Wednesday decline shortly after the U.S. business survey was published.

The cryptocurrency has since remained below $85,000, a level where Ledn co-founder Mauricio Di Bartolomeo identified a substantial concentration of call options. Those contracts are part of roughly $14 billion in Deribit options scheduled to expire Friday.