Cryptocurrency markets fell broadly during Thursday's Asian morning session, pressured by U.S. Treasury yields climbing to their highest point since 2007. Bitcoin dropped to around $83,900 at one stage, registering a 24-hour decline exceeding 2%, after previously touching nearly $87,300.

Dogecoin spearheaded the losses among major tokens, tumbling 7% to trade just above the $0.09 mark. ZEC, XRP, and HYPE each shed between 5% and 6%, while Ethereum, SOL, and BNB recorded dips of 2% to 3%. TRX remained flat during the session.

U.S. Treasury yields surged sharply on Wednesday, with the 10-year note closing at 5.11%, a single-day jump of 15 basis points. Brent crude oil staged an early rebound, climbing more than 4% to near $104 per barrel, snapping a six-session losing streak.

Data released later in the day from the S&P Global U.S. flash business survey showed corporate output expanding at the fastest pace in over five years, with the composite index rising to 58.4, its highest reading since July 2021. Later that afternoon, the U.S. Treasury auctioned $70 billion in five-year notes, which saw weak demand. The auction's high yield came in at 5.033%, marking the steepest auction yield since 2006 and roughly 3 basis points above pre-sale trading levels, indicating buyers demanded additional yield to take on the debt.

Rising government debt yields raise the hurdle for holding non-yielding assets such as Bitcoin while also increasing borrowing costs for leveraged positions. Bitcoin's steepest drop on Wednesday occurred shortly after the business survey figures were published. The cryptocurrency now trades below $85,000, a level that Ledn co-founder Mauricio Di Bartolomeo had previously flagged as containing substantial bullish options exposure ahead of Friday's roughly $14 billion Deribit options expiration.