Bitcoin Dips Toward $79,000 Amid Rising Treasury Yields and Inflation Concerns

Bitcoin prices fell as much as 3.4% on May 15, 2026, dropping to approximately US$78,600 as rising US Treasury yields and inflation concerns triggered a selloff in global risk assets.

The decline occurred alongside drops in stock and bond markets, placing the largest digital token on track for its first down week since the end of March, according to reporting from Bloomberg.

Other major cryptocurrencies experienced similar losses. Ether fell nearly 4% during the same period, dropping to US$2,200.

Macroeconomic Pressures and Geopolitical Tension

Market volatility was driven by a combination of rising interest rates and geopolitical instability. Data from KuCoin indicated that US 10-year Treasury yields rose above 4.55%, fueling concerns that central banks may be forced to tighten monetary policy to curb inflation.

Simultaneously, oil prices increased following the effective closure of the Strait of Hormuz, a critical transit point for approximately one-fifth of the world’s oil. This disruption is linked to the ongoing conflict between the US and Iran, which has weighed on investor sentiment.

Michael O’Rourke, chief market strategist at Jonestrading, linked the movement in the bond market directly to the decline in digital assets.

Global bonds are selling off, pushing interest rates higher and fueling risk-off action in speculative instruments like cryptocurrencies

Michael O’Rourke

Market Performance and Historical Context

The May 15 price action follows a period of stagnation where Bitcoin remained around US$80,000. The token has seen a significant decline from its all-time high of US$126,198.07, which was recorded on October 6, 2025, according to CoinMarketCap.

Bloomberg reported that Bitcoin has experienced an 11% drop so far in 2026, a trend that has challenged the argument made by some proponents that digital tokens serve as a safe haven during periods of economic turmoil.

Despite the current drawdown, some sectors of the crypto market have seen positive developments. The Senate Banking Committee recently advanced a landmark US digital-asset market-structure bill intended to provide regulatory clarity for the industry.

some retail investors have shifted their activity toward prediction markets, where trading volume has increased as Bitcoin prices stalled.