Bond Yields Send Bitcoin Reeling Below $83,000
Bitcoin's recent gains were short-lived as it retreated below $83,000 after reaching an intraday high of $84,450. The reversal came despite a rally in US equities and a rebound in gold prices.
The sharp drop in Bitcoin was largely attributed to the surge in US bond yields, which set multidecade highs on Tuesday. The 10-year yield reached 5.26%, just shy of its June 2007 high, while the 30-year yield exceeded 5.60% for the first time since April 2002.
Geopolitical uncertainty and inflation concerns continued to weigh on investors' minds, causing them to seek safe-haven assets such as gold. However, the precious metal's price rebound was short-lived, with a 3.6% drop on Monday still fresh in investors' minds.
An analysis by Mosaic Asset Company suggested that US equities may be due for a bounce-back, citing 'extremely oversold' conditions and robust economic data. However, the same report warned that rising interest rates could continue to weigh on investor sentiment.