Bitcoin Tumbles Below $84K as Treasury Yields Reach 19-Year High
Bitcoin's price fell below $84,000 on Thursday as the US 10-year Treasury yield reached its highest level since 2007. The Treasury yield closed Wednesday at 5.11%, up from 4.96% Tuesday, and reached 5.13% intraday. According to James Stanley, senior market analyst for global macro at FOREX.com, 'BTC has held up well even with surging rates and a strong USD,' but noted that $82,833 is the next level to watch if the pullback deepens.
The US Treasury announced Wednesday a $6 billion ceiling for its Thursday buyback of bonds with roughly 20 to 30 years remaining, part of an expanded program intended to improve liquidity in long-dated debt. Bas Kooijman, CEO and asset manager at DHF Capital, said stronger US business activity and elevated energy prices had increased expectations of further Federal Reserve tightening.
'Markets now assign around a 70% probability for a hike in October, up from roughly 55% yesterday, while expectations of additional tightening over the coming months have also increased. This repricing continues to underpin both Treasury yields and the dollar,' Kooijman said.