Bitcoin, Ethereum Retreat as Higher U.S. Treasury Yields and ETF Outflows Weigh on Crypto

Market snapshot

Bitcoin opened at $65,047.87 on Friday, July 24, 2026 down 1.6% from Thursdays open and was trading near $64,304.50 as of 9:13 a.m. ET. Ethereum opened at $1,876.92, 2.9% lower than Thursdays open, and was near $1,860.78 at 9:14 a.m. ET.

The pullback coincided with the largest one-day net outflow from bitcoin spot ETFs in recent days: about $225 million flowed out on Thursday, ending a weeklong inflow streak that had added roughly $999 million, according to Coinglass. Rising oil prices and newly announced tariff policies pushed inflation expectations higher, which in turn lifted U.S. Treasury yields and nudged institutional investors away from risk assets such as cryptocurrencies.

Higher interest rates raise the opportunity cost of holding non-yielding assets. Bitcoin pays no yield, so rising yields typically make it less attractive relative to interest-bearing instruments. Ethereum likewise does not pay interest, although holders can earn staking rewards a return that carries additional technical and counterparty risk compared with traditional fixed-income products.

Context and broader developments

Year-to-date comparisons show still-significant moves for both coins: bitcoins opening price on the day was about 2% higher than one week ago and 3.8% higher than one month ago, but roughly 45.2% below its price a year earlier. Ethereums open was up 0.7% from a week earlier and 12.7% from a month earlier, while it remained about 48.3% below the level from a year prior.

The all-time highs remain far above current levels: bitcoins peak was $126,198.07 on Oct. 6, 2025, while ethereums record was $4,953.73 on Aug. 24, 2025. Their historical lows are deep in the past: bitcoins early low was $0.04865 on July 14, 2010, and ethereums low was $0.4209 on Oct. 21, 2015.

On policy and housing frontiers, the Federal Housing Finance Agency (FHFA) has signalled a potential shift in how crypto assets are treated by mortgage markets. In late June, FHFA Director William J. Pulte ordered Fannie Mae and Freddie Mac to prepare to count cryptocurrency as an asset for mortgage underwriting. Pulte framed the change as part of a broader modernization effort: he said the housing system needs an upgrade so that people who own cryptocurrency can buy homes like everyone else. If implemented, this could materially alter how crypto balances are evaluated by lenders and could open new pathways for crypto owners seeking mortgages.

Practical obstacles remain: volatility, tax treatment, custody and valuation standards will all figure into whether and how crypto assets can be reliably incorporated into mortgage underwriting.

What investors should watch

- Treasury yields and inflation expectations: Higher yields historically pressure non-yielding risk assets. Continued upward movement in bond yields could keep downward pressure on crypto prices.

- ETF flows: Spot ETF inflows and outflows remain a near-term driver of sentiment and liquidity for bitcoin specifically. The $225 million outflow on Thursday reversed about a week of inflows and amplified selling pressure.

- Oil and macro policy: Energy-driven inflation or new tariff measures that push inflation expectations higher can sustain a higher-rate environment and change risk appetite across markets.

- Regulatory and mortgage-framework developments: Moves by the FHFA, Fannie Mae, Freddie Mac, and private lenders to accept crypto as an asset and the operational rules they adopt would be a structural development for cryptos role in household finance.

Cryptocurrency markets remain highly dynamic. Short-term price swings can be large and are sensitive to macro indicators, institutional flows, and policy signals. Investors should weigh volatility, potential staking rewards (for ethereum), custody arrangements, and tax implications before adding crypto to portfolios or using crypto assets in major financial decisions such as mortgage qualification.

This article will be updated as markets move and as regulators and mortgage agencies provide more concrete guidance.