Bitcoin and equities face pressure as U.S. Treasury borrowing costs climb.

Long-term borrowing costs are climbing to multi-month highs, creating headwinds for businesses and financial markets worldwide.

The 10-year U.S. Treasury yield — the benchmark interest rate the government pays investors for holding its highly liquid, virtually default-free bonds — rose to 4.27%, the highest level since September 3, according to TradingView data.

As the “risk-free” baseline for borrowing, the 10-year yield influences interest rates across the economy and global markets. Foreign governments such as China and Japan hold trillions in Treasuries, so rising yields push up financing costs from Wall Street to Shanghai. Banks also price loans, mortgages, and corporate debt above the 10-year rate to compensate for additional risk.

As borrowing costs climb, all interest rates tend to rise, tightening financial conditions and potentially curbing investment, consumption, and capital deployment. High-risk, high-reward assets, including bitcoin, other cryptocurrencies, and equities, often feel the squeeze first.

Bitcoin has fallen more than 1.5% to $91,000 in early Asian trading, while Nasdaq futures, heavily weighted toward tech, dropped over 1.6%. Traders attribute the sell-off to renewed geopolitical tensions, including President Donald Trump’s tariff threats against Europe tied to his Greenland plan. Over the weekend, Trump warned of a 10% levy on imports from eight European nations starting Feb. 1, rising to 25% on June 1 unless a deal is reached.

European leaders criticized the threats as anti-free-market, raising concerns that retaliation could include selling U.S. assets. Analysts, however, note that most holdings are private, limiting governments’ direct influence.

The surge in yields is not confined to the U.S. In Japan, government bond yields have risen as Prime Minister Sanae Takaichi’s election proposals include cuts to food taxes. Across advanced economies, higher fiscal spending and increased bond issuance are driving yields upward, signaling a broader tightening in global financial conditions.