Bitcoin Faces Bearish Q4 as Yields and Rate Hikes Bite

The crypto market is bracing for a potentially bearish Q4, as rising yields and rate-hike fears weigh on assets like Bitcoin. The recent 25 bps hike by the Federal Reserve has sent the U.S. 2-year Treasury yield to 4.734%, its highest level in 26 months.

The market is also eyeing the 10-year Treasury yield, which could reach a critical threshold of 6% next year. Analysts warn that if this happens, it could further tighten financial conditions and put pressure on liquidity and risk assets like crypto.

Bitcoin's short-term holder cost basis is currently at $70k, making it a key near-term support level. If BTC breaks below this level, holders could move into unrealized losses, increasing the risk of selling pressure.