Lower yields mean higher bond prices, reflecting Treasury buying while the Fed’s policy range sits at 3.75% to 4%.
The Oct. 22 selloff fits a scenario where funding sends investors into bonds and out of riskier holdings. Bitcoin traded with equities, and even gold fell, as the dollar index slipped to its lowest since Oct. 1, with gold’s two usual supports pointing higher.
The Gold Council flagged the competition
The World Gold Council’s Oct. 19 Weekly Markets Monitor, “Bonds back in the room,” observed Treasuries rallying during the Nasdaq decline despite hot inflation.
It raised the possibility that renewed safe-haven demand for bonds could compete with gold for capital, while acknowledging that lower yields reduce the opportunity cost of owning the metal.
The Oct. 22 simultaneous bond rally and precious-metals selloff matches the Bitcoin competition story. Price moves leave the source of the buying undetermined, and gold ETF flows, real yields and futures positioning would separate that explanation from others. Silver’s larger drop reflects greater sensitivity to positioning and to industrial demand.
Meta reported third-quarter revenue of $64.6 billion, up 26%, while capital expenditures reached $34.9 billion, free cash flow was negative $2.1 billion, and the company raised the low end of its 2026 capex guidance by $5 billion to $135 billion to $145 billion.
It also announced a new class of non-voting shares intended partly to support financing. Meta’s shares fell about 8% on Oct. 22, and its five-year credit default swap spread rose 7.6 basis points to a record 114.79.
Oracle’s spread sat near a record and Amazon’s near its highest since March 2020. The evidence comes from a few large issuers, and a market-wide credit squeeze would need wider investment-grade and high-yield spread indexes to confirm it.
Bitcoin sees oil adding inflation and growth worries together
Brent moved above $111 as renewed Houthi attacks in Saudi Arabia raised supply worries, its highest since May. Dearer fuel feeds inflation and cuts household and corporate spending power.
Markets price in roughly a 78% chance of a December rate hike while expecting the Fed to hold on Oct. 28. The oil shock keeps hike expectations alive, which restrains gold’s usual lift from falling yields.
Treasury buyers may be weighing the growth threat more than the inflation threat, and Thursday’s prices leave the split between the two unclear.
Glassnode’s Oct. 21 report places the average acquisition cost of US spot Bitcoin ETFs near $81,500 and of corporate treasuries near $80,200, with replenished spot bids near $80,000.
Below that sits the True Market Mean near $77,600. Overhead supply runs from $85,000 to $87,500, where older-holder cost bases and liquidation clusters overlap.
What Friday and the Fed will test
The S&P Global flash PMIs at 9:45 a.m. Eastern and the final University of Michigan survey at 10:00 a.m. carry the first read on the explanations.
Consensus for the manufacturing PMI is near 55.5 against 55.9 previously, and for services near 58.0 against 58.8, while the preliminary Michigan survey put one-year inflation expectations at 4.7% and longer-term expectations at 3.5%. The Fed decides on Oct. 28.
If bonds stabilize, oil retreats and equities recover, defensive demand is easing, and Bitcoin holding $80,000 to $81,500 would show the cost-basis zone absorbing the selloff.
A weaker PMI paired with rising inflation expectations would point to growth fears alongside persistent inflation, a harder mix for Bitcoin. A daily close below $80,000 would put average ETF and Treasury holders at a loss and bring $77,600 into focus.
Falling Treasury yields are failing to translate into easier conditions for Bitcoin, and the next bond, oil, and equity readings will show whether that holds.
