Bitcoin's price slid on Wednesday as U.S. Treasury yields surged, with the benchmark 10-year yield climbing above 5% for the first time in 19 years — its highest level since 2007. Bitcoin is the largest cryptocurrency by market capitalization.

Bitcoin dates back to 2009, meaning the largest cryptocurrency has never traded while the 10-year yield sat above 5% — until now.

The leading cryptocurrency was down 2% over a 24-hour period in Wednesday afternoon trading in New York, changing hands at $84,357.

Bitcoin had rallied earlier in the week as investors piled into exchange-traded funds (ETFs), at one point soaring to nearly $87,330. Spot bitcoin ETFs, which launched in the U.S. in January 2024, have become a key channel for institutional money into the asset. But the rally has since cooled, and the asset fell further on Wednesday afternoon around the time the U.S. Treasury Department said it would purchase up to $6 billion of longer-dated government debt on Thursday.

The Treasury's announcement was flagged by Bitcoin Magazine on X:

JUST IN: U.S. Treasury Department to buy back up to $6 billion in longer-term debt tomorrow. Buy Bitcoin pic.twitter.com/nZm3BNqiVH — Bitcoin Magazine (@BitcoinMagazine) September 23, 2026

Bitcoin previously benefited from the Department's announcements of buybacks — posting its best run in months — but dropped this time around. A buyback involves the Treasury repurchasing outstanding government securities from the market.

The 10-year Treasury yield, a benchmark for borrowing costs across the U.S. economy, climbed above 5% after September's flash purchasing managers' index (PMI) data — early readings of business activity across manufacturing and services — came in well ahead of forecasts, pushing the composite index to a five-year high. Inflation details added to the pressure: input costs across manufacturing and services rose to their highest level since October 2022, driven largely by fuel and transportation, while wage pressure also strengthened.

Rising yields are typically a headwind for bitcoin's price. When safe government bonds pay 5%, holding an asset that generates no income becomes more expensive. Higher rates also tend to strengthen the dollar and dampen appetite for risk-on assets.

Bitcoin has repeatedly retreated this year when yields rose on inflation fears, often with ETF outflows and forced selling by leveraged traders amplifying the move. Thursday's buyback operation, landing with the benchmark yield above 5%, will provide another look at how bitcoin trades around Treasury debt management.

This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.