Mortgage Rate Surge Presses Down on Bitcoin Amid Higher Yields
The average 30-year fixed US mortgage rate spiked to 7.45% on Thursday, marking a significant jump from its low of 5.99% in late February. According to Mortgage News Daily, this increase can be attributed to three key factors: Federal Reserve commentary, higher oil prices, and stronger economic data.
Mortgage News Daily's Chief Operating Officer Matthew Graham noted that there was no clear catalyst for Thursday's bond selloff, stating 'No obvious catalyst. Explanations require concocting narratives and then defending them.'
The Treasury yield, which tracks the 10-year yield, closed at 5.18% on Thursday, up from 4.96% on Tuesday. This increase is likely to put pressure on Bitcoin (BTC) as higher yields make holding it a less attractive option.
On Wednesday, Bitcoin fell below $84,000 after strong US business activity data pushed the 10-year yield past 5%. However, by Friday, BTC had regained some ground, trading at $84,590 with modest gains over the past 24 hours. Altcoins such as Solana (SOL) and XRP (XRP) also saw notable gains.