Bitcoin Tumbles Below $84K as Treasury Yields Hit 19-Year High
Bitcoin prices slipped below $84,000 during Asian trading hours on Thursday, as the US 10-year Treasury yield reached its highest level since 2007. The yield closed at 5.11%, up from 4.96% on Tuesday.
The surge in Treasury yields is attributed to stronger US business data and rising oil prices, according to CME Group. This has led to increased expectations of further Federal Reserve tightening, with markets assigning a 70% probability for a hike in October.
James Stanley, senior market analyst at FOREX.com, noted that 'BTC has held up well even with surging rates and a strong USD.' He identified $82,833 as the next level to watch if the pullback deepens.
The US Treasury announced a $6 billion ceiling for its Thursday buyback of bonds with roughly 20 to 30 years remaining. This is part of an expanded program aimed at improving liquidity in long-dated debt.