Bitcoin Crumbles Below $84K as US Yields Reach 19-Year High

Bitcoin's price plummeted below $84,000 during Asian trading hours on Thursday as US Treasury yields surged to their highest level since 2007. The yield reached an intraday high of 5.13%, forcing Bitcoin to touch around $83,200.

The catalyst behind the rate-driven pressure was a combination of stronger US economic data and higher energy prices, which pushed the US 10-year yield higher on Wednesday before ending the day at 5.11%, up from 4.96% the prior session.

Market participants are now looking toward upcoming Federal Reserve communications and economic releases, with traders expecting a possible hike in October. Bas Kooijman, CEO and asset manager at DHF Capital, stated that markets were assigning around a 70% probability to an October hike, up from roughly 55% the previous day.

CME Group's Fedwatch tool also reflects this shift, showing a 75.3% probability of a hike to a 4.00%, 4.25% range. The implication is straightforward: if an October hike becomes more firmly priced, risk assets like Bitcoin can face renewed pressure even before the meeting arrives.