Bitcoin Dips Below 86000 Amid Rising Treasury Yields

Bitcoin’s value dipped below $86,000 on Tuesday, following a 0.50% drop in the last 24 hours, according to data from CoinMarketCap. The world’s largest cryptocurrency settled at $85,578.17 but showed a 3.02% gain over the past week and a 6.97% increase over the past month.

Other major cryptocurrencies also saw mixed movements. Ethereum fell 0.46% to $2,701.20, while BNB and Bitcoin Cash declined by 1.30% and 1.68%, respectively. Solana experienced a slight drop of 0.24%, landing at $120.13.

However, some digital assets bucked the trend. Zcash surged 0.95% to $1,343.16, Monero climbed 3.23% to $562.99, and Bittensor increased by 0.14% to $301.81. The overall market capitalization of cryptocurrencies fell 0.35% to $2.91 trillion.

Analysts attribute Bitcoin’s recent decline to rising US Treasury yields and a stronger dollar. While weak US labor market data has lowered the chances of an October interest rate hike, long-term bond yields remain high, fueled by inflation and government debt concerns. These factors are limiting gains in risk assets, including cryptocurrencies.