Bond Yields Soar as Bitcoin Volatility Persists into August Close
Bitcoin's price volatility persisted into the final hours of August as it traded around $78,000 on Monday. The US Treasury Secretary, Scott Bessent, weighed in on the bond market, saying he hadn't yet acted to shore up the long end of the yield curve.
In an interview with CNBC, Bessent stated that he was 'fine' with yields rebounding after the announcement. However, this didn't seem to calm investors as the 10-year yield reached its highest levels since January 2025 at 4.76%. The 30-year yield also approached a new high, reaching 5.269% on the day.
Ray Dalio, co-founder of Bridgewater Associates, expressed skepticism about the Treasury's ability to control bonds. He advised diversifying assets and overweighting gold and Bitcoin as potential hedges against future debt crises.
Despite the volatility, some analysts see a hidden bearish divergence playing out on daily time frames between price and the relative strength index (RSI). This could contribute to mounting weakness in Bitcoin's price.