Bitcoin Dips Below $84K Amid Surging US Yields and Rate Hike Fears
Bitcoin's price slipped below $84,000 during Asian trading hours on Thursday as the US 10-year Treasury yield climbed to its highest level since July 2007, reaching 5.15%. The 30-year bond yield also rose to 5.44%, a level not seen in over two decades.
The increased yields coincided with rising expectations of a Federal Reserve rate hike at the Oct. 28 meeting, with data from CME's FedWatch tool showing odds topping 75% - up from roughly 49% just a week earlier.
Vail Hartman, US rates strategist at BMO Capital Markets, pointed out that strong purchasing managers' index data reinforces the risk of renewed acceleration in demand-driven inflation. As a result, stocks and Bitcoin both slid, with Nasdaq-100 futures falling about 1%, S&P 500 futures dropping 0.6%, and Dow futures slipping roughly 215 points.
Despite the macroeconomic headwinds, James Stanley, senior market analyst for global macro at FOREX.com, noted that BTC has held up well with surging rates and a strong USD. However, he flagged $82,833 as the next level to watch if the pullback deepens.