Bitcoin Funds Flood In as 10-Year Yield Hits 24-Year High

The 10-year Treasury yield hit its highest level since 2002, reaching 5.31%, as the Federal Reserve raised interest rates on September 16. Despite this, Bitcoin funds took in $2.52 billion in the week ending September 29, with total crypto investment funds attracting $3.55 billion. Bitcoin itself rose about 10% in September, its best performance in over a decade, but its price has still dropped nearly 30% over the past year. The influx of funds into Bitcoin is attributed to investors buying into the potential price appreciation of the asset, as it pays no interest or dividends. However, this rally may be short-lived, and Bitcoin may lose its gains if the 10-year yield rises further and fund flows turn negative.