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Yields Jump on Inflation and Oil Shock, Pulling Bitcoin Back Into the $70,000s

Surging bond yields make government debt more attractive than volatile, zero‑yield tokens.

Overview

  • Bitcoin fell to about $79,000 Friday after Treasury yields hit their highest levels in roughly a year and major stock indexes turned lower.
  • The day before, the Senate Banking Committee advanced the Clarity Act on a 15–9 vote, Bitcoin briefly topped $82,000, and spot Bitcoin ETFs logged $131.3 million in net inflows for May 14.
  • Oil prices climbed as the Iran conflict kept pressure on supply routes, with Brent above $108 and the U.S. 10‑year yield around 4.55% and the 30‑year above 5.1%, pushing traders to price a greater chance of a Fed rate hike by year‑end.
  • Derivative stress built as Coinglass counted about $440 million in liquidations over 24 hours, and CryptoSlate reported U.S. spot Bitcoin ETFs on pace for the largest weekly net outflows since January, removing a key source of buy‑side support.
  • Higher yields raise the opportunity cost of holding Bitcoin by offering over 4% in risk‑free returns, which compresses the premium investors demand for non‑yielding assets and can curb ETF demand until rate pressures or oil shocks ease.