Bitcoin Falls Below $64K as Surging US Bond Yields Boost Fed Rate-Hike Odds
Bitcoin's price fell below $64,000 on Friday as it continued its latest correction. This decline accelerated after Wall Street opened, with the cryptocurrency experiencing more than a 1.6% drop.
The downward pressure on Bitcoin's price is being attributed to multiple macroeconomic headwinds, including rising US bond yields and geopolitical tensions. Mosaic Asset Company notes that the two-year yield is particularly influential in determining Federal Reserve interest-rate changes, with risk assets suffering as a result of additional hikes.
According to CME Group's FedWatch Tool, markets still expect the Fed to leave rates unchanged next week but are pricing in a 0.25% hike in September as one of two increases expected before the end of 2026. This expectation is placing downward pressure on stock indexes.