Bitcoin fell with US stocks as high inflation and a further surge in oil prices coincided with another multidecade high for US bond yields.
Bitcoin (BTC) dipped below $77,000 around Thursday’s Wall Street open as risk assets faced resurgent macro headwinds.
Data from TradingView showed BTC/USD on track for 2% losses on the day, following weakness in US equities.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Ongoing escalation in the Middle East fueled a fresh surge in oil prices, with WTI crude passing $100 per barrel for the first time since May 21. Brent crude passed $105 per barrel on the day, nearing a new 16-week high.
CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView
Against a backdrop of increasing inflation due to higher oil prices, markets also faced a fresh breakout in long-dated US bond yields. These came despite the Treasury executing the first of its stepped-up debt buyback operations and repurchasing $6 billion worth of Treasurys on Wednesday.
The US 30-year yield reached 5.353% on the day, a level last seen in June 2007, while the 10-year yield hit its highest levels since November 2023 at 4.924%.
US 30-year bond yield one-month chart. Source: Cointelegraph/TradingView
Commenting, trading resource The Kobeissi Letter warned of knock-on effects from high borrowing costs for both government and consumers.
“The bond market is quite literally fighting the US Treasury,” it wrote in a reaction on X.
The August print of the Producer Price Index (PPI) underscored increased inflation, coming in at 5.4% year-on-year, 0.1% higher than expected. July’s headline PPI print was likewise revised higher.
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