Bitcoin Holds Steady as Euro Hits 17-Month Low
The euro reached a 17-month low, driven by mounting fiscal concerns in France and political instability in Spain. France's heavy debt burden and political gridlock have pushed its 10-year yield premium over German Bunds to near 140 basis points, reflecting growing investor anxiety. Meanwhile, Spain's snap election on November 29 and lack of a state budget since 2023 have added to the euro's weakness, despite the European Commission forecasting a manageable deficit and debt for 2026.
Despite the euro's decline and a stronger dollar, Bitcoin has shown resilience, trading around $86,463, just 1.1% below its late-September high of $87,378. The cryptocurrency has faced resistance near $87,000-$87,400 but remains supported above $84,000. A sustained close above $87,378 would confirm a breakout, while another rejection would keep focus on the $84,000 support level.
The dollar's strength is also supported by elevated U.S. bond yields, which eased to about 5.26% but remain near last week's 24-year high. Softer September employment data has reduced expectations for a Federal Reserve rate hike in October, with CME pricing showing a 79.5% probability of no change. However, markets still anticipate a December increase, maintaining restrictive policy expectations.
Bitcoin's resilience against the stronger dollar highlights its relative strength, though the $87,378 level remains a key threshold for a confirmed breakout. The euro's weakness, driven by fiscal and political uncertainties, contrasts with Bitcoin's stability near its recent high.