Bitcoin fell below the $83,000 level Thursday as cryptocurrencies came under strain from Treasury yields hovering around multidecade highs.

Bitcoin dropped 1% to $82,580, as the bond selloff dominating markets over the last month picked up steam again Wednesday, taking the 10-year Treasury yield to an intraday high of 5.361% and the 30-year yield to 5.730%--their highest since 2002. A resumption of pressure on long-dated Treasurys tends to subdue investor sentiment toward riskier assets like cryptocurrencies.

The sharp rise in Treasury yields leaves bitcoin vulnerable as it limits the amount of liquidity available for risky assets, Zaye Capital Markets analyst Naeem Aslam said in a note. Given high long-end yields, bitcoin remains "highly exposed to every shift in the market's view of inflation, monetary policy and global risk appetite," he wrote.

High oil prices and a strong dollar are also weighing on bitcoin. Brent crude prices rose to $104 a barrel again on Thursday, while the U.S. Dollar Index rose 0.1% to 102.293--closing in on the near 18-month high of 102.535 reached Monday.

Bitcoin fell over 2.5% on Wednesday to a two-and-a-half week low.

"[Yesterday's] sell-off looks macro-triggered but crypto-amplified," said Bitget Wallet's Lacie Zhang. She added that low trading volumes in crypto have made the moves look sharper.

Meanwhile, the S&P 500 and Nasdaq composite fell Wednesday after surging to record highs the prior day, further denting optimism around cryptocurrencies.

Bitcoin is increasingly competing with other asset classes for a place in diversified long-term portfolios, which changes how its recent decline should be interpreted, said Maksym Sakharov of WeFi. "This represents a different way of valuing the asset than in previous cycles because the discussion gradually shifts from whether bitcoin belongs in a portfolio to how much exposure it deserves relative to every other asset competing for long-term capital."