Bitcoin Ticks Higher as US Bond Yields Plummet from 24-Year High
Bitcoin's price surged above $84,000 around the Wall Street open on Thursday as US bond yields retreated from their highest levels since April 2002. The US 10-year yield dropped to 5.251% after reaching a peak of 5.342%. This development has sparked hope for Bitcoin bulls that the cryptocurrency may continue its upward trend.
Data from TradingView showed that BTC/USD preserved a pattern of higher lows on hourly time frames, up 0.6% on the day. Analyst Rekt Capital noted that Bitcoin is due for a 'messy' retest of $82,500 and warned that a successful retest could set up the next trend continuation.
The bond market sell-off has been driven by concerns over mounting public debt and rising yields increasing governments' interest costs. According to Mahmood Pradhan, former deputy director of the European department at the International Monetary Fund, markets worldwide are 'very nervous' about these issues. He attributed the recent increase in US 10-year yields to the ongoing Middle East war.
Crypto analyst Benjamin Cowen noted that yields have gone up rapidly since the market became concerned that the Fed was no longer taking inflation seriously. He predicted that this trend would likely continue until the Fed gets a proper handle on inflation.