CONNECT WITH US
Web3 & Blockchain

Web3 & Blockchain

Bitcoin falls below $84K as 10-year Treasury yield hits 19-year high

Cointelegraph logo

Published on

Add as a preferred source on Google
Bitcoin falls below $84K as 10-year Treasury yield hits 19-year high

Bitcoin traded near $83,200 as Fed hike odds reached about 75% and Treasury prepared a $6 billion buyback of long-dated bonds.

Bitcoin fell below $84,000 during Asian trading hours on Thursday, slipping to $83,200 after the US 10-year Treasury yield climbed to its highest level since 2007.

The 10-year yield closed Wednesday at 5.11%, up from 4.96% Tuesday, and reached 5.13% intraday. CME attributed the bond selloff partly to stronger US business data and rising oil prices.

“BTC has held up well even with surging rates and a strong USD,” James Stanley, senior market analyst for global macro at FOREX.com wrote Wednesday. Stanley identified $82,833 as the next level to watch if the pullback deepens.

The US 10-year Treasury yield climbed above 5.1%, reaching its highest level since 2007. Source: TradingView

Rising Treasury yields offer investors higher returns on government debt and can raise borrowing costs, potentially weighing on Bitcoin and other risk assets.

The US Treasury announced Wednesday a $6 billion ceiling for its Thursday buyback of bonds with roughly 20 to 30 years remaining, part of an expanded program intended to improve liquidity in long-dated debt.

Related: Bitcoin ETFs add $347M as BTC falls below $84K after topping $87K

Bas Kooijman, CEO and asset manager at DHF Capital, said stronger US business activity and elevated energy prices had increased expectations of further Federal Reserve tightening.

“Markets now assign around a 70% probability for a hike in October, up from roughly 55% yesterday, while expectations of additional tightening over the coming months have also increased.


Source link
Related Topics:Web3 & Blockchain

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.