Bitcoin Faces Headwinds as Rising Yields and Fed Fears Intensify
Bitcoin (BTC) has been on a tear in August, with its strongest monthly rally in years. The cryptocurrency gained nearly 25% in August, its best month since November 2024, thanks to US Treasury bond buybacks, a weaker dollar, and renewed demand for scarce assets.
However, the macroeconomic picture changed quickly as September began, with rising US Treasury yields putting pressure on Bitcoin. The 10-year Treasury yield recently approached 5%, its highest level since 2023, which can make government debt more attractive to investors and reduce demand for higher-risk assets like Bitcoin.
Christopher Waller, a Federal Reserve Governor, stated that underlying inflation is doing better than core numbers suggest, and he's not expecting much from Friday's employment report. He mentioned that next week's August CPI print will show continued progress toward the 2% target, which would make him favor holding rates steady in September.
Bitcoin faces important technical levels, with a support area near USD 71,781 and resistance around USD 82,793. If it can break above this level, it could open a path to USD 90,000.