Bitcoin Price Slips Amid Soaring US Treasury Yields
Bitcoin's price took a hit on Wednesday as US Treasury yields soared to their highest level in nearly two decades. The cryptocurrency dropped by 2% over the past 24 hours, trading at around $84,357.
The price spike was short-lived, having surged earlier in the week due to investor interest in exchange-traded funds (ETFs). However, this rally has since cooled down. Bitcoin's price had briefly reached nearly $87,330, but it dropped further on Wednesday afternoon after the US Treasury announced plans to purchase up to $6 billion of longer-dated government debt.
The rising yields are typically a headwind for Bitcoin's price, making holding an asset with no income more expensive. Higher rates also tend to strengthen the dollar and dampen appetite for risk-on assets, which can negatively impact cryptocurrency prices.