BTC Tumbles as Bond Yields Reach New Heights
Bitcoin's recent gains were short-lived as it reversed course after reaching $84,450 on Tuesday. The price dropped back below $83,000 following the Wall Street open.
The move comes as US bond yields continued to set multi-decade highs, with the 30-year yield reaching new 24-year highs above 5.60% and the 10-year yield hitting 5.26%, near its June 2007 high.
Gold also fell 3.6% on Monday to $4,115 per ounce before rebounding to $4,166 at the time of writing. Market commentator The Kobeissi Letter described gold's move as 'highly unusual,' attributing it to the surge in yields causing an 'extraordinary disruption across the precious metals market.'
Despite the volatility, new analysis from Mosaic Asset Company suggests that US equities could see renewed upside amid 'extremely oversold' conditions. The company notes that robust economic data, including higher-than-expected job gains in August, could support further stock gains even as the Federal Reserve raises interest rates.