Crypto Markets Suffer as Rate Hike Odds Increase and Treasury Yields Rise

Crypto markets took a hit as the US Treasury yields rose and expectations of another Federal Reserve rate hike increased. Bitcoin, Ethereum, XRP, and Dogecoin were among the assets that fell in value. On September 28, Bitcoin traded around USD 82,930, down 1.2% over 24 hours, while Ethereum slipped 0.2% to USD 2,665. XRP dropped 2.3% to USD 1.48 and Dogecoin fell 3.6% to approximately USD 0.093.

The broader crypto market capitalization remained near USD 2.96 trillion. Over USD 530 million in crypto positions were liquidated over 24 hours, with bullish long positions accounting for most losses. Bitcoin open interest also declined 2.21%.

The selling continued as Bitcoin tested approximately USD 83,100 on September 29. CoinMarketCap reported that DOGE fell about 3%, XRP lost nearly 2%, while Ether remained comparatively flat.

Higher interest rates can pressure cryptocurrencies by increasing borrowing costs, strengthening yields available on traditional assets and reducing financial liquidity. Altcoins can experience larger moves as their markets are generally smaller and more sensitive to risk appetite.