Bitcoin has regained attention as a potential hedge against dollar debasement (loss of purchasing power) while rising U.S. Treasury yields expose pressure on government debt markets. Stephen Coltman, Head of Macro at 21Shares, said the Federal Reserve (U.S. central bank) may ultimately tolerate elevated inflation to support the stability and orderly functioning of those markets. The 10-year Treasury yield reached 5.34% on Thursday, its highest level since 2002, while the 30-year Treasury yield reached a 24-year high of 5.63%. Higher rates increase the government’s interest costs, potentially requiring more borrowing and widening the deficit, which had reached $1.97 trillion for fiscal year 2026. Bitcoin climbed from about $58,000 over the summer to a September peak of $87,000 after the Treasury said in August it would double debt buybacks, but its rally stalled as yields later rose. TradingView data shows a somewhat negative correlation between Bitcoin, 10-year Treasury yields and the U.S. Dollar Index. Chris Kline, COO & Co-Founder at BitcoinIRA, said persistent Treasury stress could strengthen the longer-term case for scarce assets if policymakers face pressure to manage liquidity or the debt burden. BTC was up 1% over 24 hours at $83,513, according to Benzinga Pro.