US bond yields fell sharply around Thursday’s Wall Street open as Bitcoin price action sought to preserve a local trend of higher lows.
Bitcoin (BTC) pushed above $84,000 around Thursday’s Wall Street open as US bond yields retreated after setting more multidecade highs.
Data from TradingView showed BTC/USD preserving a pattern of higher lows on hourly time frames, up 0.6% on the day.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Both the US 30-year and 10-year yields set new macro highs, with the latter reaching 5.342% — a level last seen in April 2002 — before dropping to 5.251% at the time of writing.
US 10-year bond yield one-hour chart. Source: Cointelegraph/TradingView
Discussing the forces behind the ongoing bond-market sell-off, Mahmood Pradhan, former deputy director of the European department at the International Monetary Fund, told the New York Times that markets worldwide were “very nervous” about mounting public debt, with rising yields increasing governments’ interest costs.
“The Middle East war has really turned everything around,” he said, with higher oil prices already showing up in inflation data.
As Cointelegraph reported, the August reading of the US Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, came in below expectations at 3.4% year on year. Markets showed little reaction to the softer reading, however, with analysts attributing much of the decline to a change in how PCE was calculated.
“Yields have gone up rapidly since the market became concerned that the Fed was no longer taking inflation seriously.” crypto analyst Benjamin Cowen told X followers, adding:
Bitcoin traded between thickening liquidity on exchange order books above and below the spot price. Data from CoinGlass showed $84,500 and $82,900 as key areas of interest at the time of writing, with both potentially acting as a magnet for price.
Liquidations over the past 24 hours totaled $25 million as nearby long and short positions helped preserve rangebound conditions.
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