Crypto Tests Resilience Amid Fed Decision and Higher Yields

Bitcoin, Ethereum, and XRP are approaching the Federal Reserve's September 16 decision with a crucial question in mind: how will crypto react to higher yields?

The current Treasury yields near 5% and two-year rates above 4.5% would traditionally be a cause for concern in the market.

However, despite these conditions, crypto has shown resilience, with Bitcoin holding around $77,000, Ethereum near $2,500, and XRP at $1.35-$1.40.

Crypto's reaction to monetary tightening is being tested as investors appear to be focusing on the clarity brought by the Fed's decision rather than just the prospect of higher rates.

Mark Connors, CIO of Risk Dimensions, suggests that the bond-market move may reflect broader concerns beyond conventional rate expectations, including persistent inflation and rising oil prices.

This could lead investors to view Bitcoin as a protection against currency debasement, rather than just a growth asset.