Bitcoin Bounces Above $84,000 as Treasury Yields Ease
Bitcoin has staged a rebound to above US$84,000 as easing Treasury yields have provided some relief to cryptocurrency markets.
The improvement in crypto sentiment coincides with a retreat in global bond markets. The benchmark US 10-year Treasury yield has eased towards 5.23% after reaching about 5.35%, its highest level in more than two decades.
Lower bond yields tend to support Bitcoin and other higher-risk assets by reducing the relative attraction of government debt and easing pressure on financial-market valuations.
The retreat follows a turbulent quarter for bond markets as persistent inflation, higher oil prices and expectations of tighter-for-longer US monetary policy pushed borrowing costs sharply higher. By contrast, Bitcoin was one of the strongest-performing major assets during the September quarter, with funds exposed to the cryptocurrency recording gains of more than 40%.