Bitcoin Defies Bond Market Turmoil with Steady Performance Above $78,800
Bitcoin has held its ground despite the turmoil in bond markets, staying above its 50-week moving average near $78,800.
The US Treasury yield jumped to levels not seen in decades, with the 30-year yield reaching 5.4% and the 10-year yield touching 5%, a level last reached in 2007.
The strong manufacturing data, which saw the PMI index come in at 57 against expectations of 53.7, has raised concerns that inflation could pick up, pushing the probability of a rate hike at the Federal Reserve's October 28 meeting to 73.1%.
Bitcoin analysts point out that the cryptocurrency's current rally began during an earlier period of rising bond yields, when the US Treasury intervened to calm the market, and that as long as Bitcoin holds above its 50-week average, pullbacks should be seen as buying opportunities rather than a reason for concern.