Bitcoin traded near $83,200 as Fed hike odds reached about 75% and Treasury prepared a $6 billion buyback of long-dated bonds.
Bitcoin fell below $84,000 during Asian trading hours on Thursday, slipping to $83,200 after the US 10-year Treasury yield climbed to its highest level since 2007.
The 10-year yield closed Wednesday at 5.11%, up from 4.96% Tuesday, and reached 5.13% intraday. CME attributed the bond selloff partly to stronger US business data and rising oil prices.
“BTC has held up well even with surging rates and a strong USD,” James Stanley, senior market analyst for global macro at FOREX.com wrote Wednesday. Stanley identified $82,833 as the next level to watch if the pullback deepens.
The US 10-year Treasury yield climbed above 5.1%, reaching its highest level since 2007. Source: TradingView
Rising Treasury yields offer investors higher returns on government debt and can raise borrowing costs, potentially weighing on Bitcoin and other risk assets.
The US Treasury announced Wednesday a $6 billion ceiling for its Thursday buyback of bonds with roughly 20 to 30 years remaining, part of an expanded program intended to improve liquidity in long-dated debt.
Related: Bitcoin ETFs add $347M as BTC falls below $84K after topping $87K
Bas Kooijman, CEO and asset manager at DHF Capital, said stronger US business activity and elevated energy prices had increased expectations of further Federal Reserve tightening.
“Markets now assign around a 70% probability for a hike in October, up from roughly 55% yesterday, while expectations of additional tightening over the coming months have also increased. This repricing continues to underpin both Treasury yields and the dollar,” Kooijman said in a market analysis shared with Cointelegraph on Thursday.
Less than five weeks out from the Oct. 28 meeting of US policymakers, CME Group’s Fedwatch tool shows a 75.3% probability of a hike to 4.00-4.25%
Related: Institutions held crypto through 50% drawdown, Bitwise finds
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
