Bitcoin Slips Below $84k Amid Rising Treasury Yields and Inflation Concerns
Bitcoin's price slipped below $84,000 on Thursday as investors became wary of higher interest rates and inflation. Treasury yields have surged to a 19-year high, with the benchmark 10-year yield hitting its strongest level since 2007. This shift in monetary policy has made risky assets like Bitcoin less appealing to investors.
The world's largest cryptocurrency fell by 2.7% to $84,148.7 as the broader crypto market declined due to weak risk appetite and profit-taking after a strong September for altcoins. Treasury yields have been rising amid robust U.S. purchasing managers index data and hawkish comments from Federal Reserve Governor.
The Fed's commitment to a 2% annual inflation target has led markets to expect more rate hikes, causing bond yields to surge across the developed world. Oil prices also rebounded overnight as bets on more U.S.-Iran diplomacy appeared to be overstated, further spooking investors.