Bitcoin Slumps to $83,200 as Fed Rate Hike Fears Mount

The price of Bitcoin fell back to around $83,200 after reaching an eight-month high of $86,054 on Monday. The sudden drop was attributed to a rise in bond yields and increasing probability of a Fed rate hike.

Momentum had been building towards the end of last week, with capital inflows into ETFs and renewed risk appetite driving prices up. However, this momentum reversed, and BTC briefly returned to around $83,200 during Asian trading after a rejection near $87,000.

The ten-year US yield surpassed 5.1%, its highest level since 2007, while the thirty-year rate reached 5.44%, its highest since 2004. The probability of a rate increase in October now exceeds 75%, up from around 49% a week ago.