Bitcoin Bucks Bond Market Turmoil, Holds Above 50-Week Average

Bitcoin has weathered the recent turmoil in bond markets, holding above its 50-week moving average near $78,800. The cryptocurrency slipped to around $83,800 this week as US bond yields surged to levels not seen in decades.

The 30-year Treasury yield reached 5.4%, its highest level in 23 years, while the 10-year yield touched 5%, a figure last reached in 2007, just before the global financial crisis.

The jump followed stronger than expected manufacturing data, with the PMI index coming in at 57 against expectations of 53.7. This has raised concerns that inflation could pick back up, pushing the probability of a rate hike at the Federal Reserve’s October 28 meeting to 73.1%.

Bond markets took another hit after a weak auction of five-year US government debt, with demand from indirect buyers falling short and forcing the government to offer higher yields to attract sufficient interest.