Crypto Market Braces for Bearish Q4 Amid Rising Yields and Rate Hike Fears

The crypto market is bracing for a potentially bearish Q4 amid rising yields and rate hike fears. The Federal Reserve's recent decision to raise interest rates has sparked concerns that further increases could tighten financial conditions, especially with US government debt exceeding $30 trillion.

The key signal coming from the 10-year Treasury yield is its recent breakout above 5%, a crucial technical indicator suggesting rising yields could continue to put pressure on liquidity and risk assets like crypto. This, combined with rate-hike expectations and a stronger dollar, has weighed heavily on crypto's September ROI.

Bitcoin's $70k support level is currently being eyed by traders, as a break below it could trigger more selling pressure. However, despite the macro challenges, traders seem to believe that the odds of a rally in October are still worth betting on, with fresh speculative capital entering the market.