Bitcoin Tumbles Below $77,000 Amid Rising US Bond Yields and Oil Prices

Bitcoin (BTC) has taken a hit in value over the past 24 hours, slipping below $77,000. The cryptocurrency's price decline has raised concerns among traders and investors about its potential to drop further.

The latest slump comes as four macro threats weigh on the market. Firstly, the US bond market is experiencing a surge, with the benchmark 10-year Treasury yield reaching its highest level since mid-2007 at 5.02%. Rising government bond yields are potentially bearish for Bitcoin, as they increase returns available from safer investments.

Secondly, energy markets are seeing significant increases in oil prices due to supply disruptions and global demand. Brent crude has climbed to approximately $107.37 per barrel, while West Texas Intermediate crude traded above $103. These elevated oil prices could place renewed upward pressure on inflation.

Thirdly, the Federal Reserve is expected to increase interest rates by 25 basis points on Wednesday, which would be its first rate hike since mid-2023. This move could encourage investors to reduce exposure to volatile assets like Bitcoin.

Lastly, the Bank of Japan may tighten monetary policy just two days after the Fed's decision, with approximately 97% of economists surveyed by Reuters expecting a rate increase on September 18.