Bitcoin Dips as Bond Yields Rise and Regulatory Hopes Provide Limited Support
Bitcoin BTC edged lower on Tuesday, continuing its decline from the previous session as rising global bond yields overshadowed optimism surrounding U.S. regulatory developments. The largest cryptocurrency by market cap dropped 0.13% to $85,830.7 by 05:35 ET (09:35 GMT). Other cryptocurrencies also fell, retreating from recent gains but maintaining hope for a strong October performance, a trend dubbed “uptober.”
Global bond yields surged this week, with U.S. 10-year yields hitting a 24-year high on Monday. German and UK 10-year yields also reached multi-year highs. The rise in yields was driven by concerns over fiscal conditions in developed nations, higher oil prices, and expectations of further interest rate hikes. Higher yields typically reduce the appeal of speculative assets like crypto, though Bitcoin found some support from bets that bond market instability could weaken the dollar, benefiting alternative assets.
The Commodity Futures Trading Commission (CFTC) proposed a regulatory framework for leveraged crypto trading, opening a 50-day public comment period. The proposal aims to create safeguards for retail investors engaging in leveraged, financed, or margin trades. This follows the Securities and Exchange Commission's approval of tokenized stock offerings earlier this year, adding to positive regulatory sentiment in the crypto space.
Broader crypto markets declined on Tuesday, with Ethereum ETH falling 0.5% to $2,702.16 and Binance Coin BNB slipping 0.6%. XRP and Cardano ADA saw declines of 1.1% and 0.5%, respectively, while Solana SOL rose about 2%. Among memecoins, Dogecoin DOGE fell 1.4% and Shiba Inu SHIB dipped 2.6%.