Bitcoin prices on Thursday fell to the lowest level since June, while Treasury yields climbed, as traders are betting that a resilient economy will encourage the Federal Reserve to raise interest rates further.
The cryptocurrency
BTCUSD,
declined 3.4% over the past 24 hours to as low as $27,705 on Thursday, according to CoinDesk data. Bitcoin has gained over 70% so far this year, but is still down almost 60% from its all-time high in 2021.
“When you throw in what is happening in the bond market, it becomes easy for Bitcoin prices to soften,” said Edward Moya, market analyst at OANDA.
High interest rates typically make risky investments, such as crypto, less appealing.
The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
rose 5.6 points to 4.313% on Thursday, according to Dow Jones market data. The yield on the 30-year Treasury
BX:TMUBMUSD30Y
gained 5.9 basis points to 4.415%, on track to its highest close since 2011.
Meanwhile, “it looks like some leveraged funds are ramping up bearish bets that Bitcoin will drift lower,” Moya wrote in a Thursday note.
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