Bitcoin dropped on Thursday as a jump in Treasury yields and a rebound in oil prices ramped up concerns over higher interest rates. The world's largest crypto still holds strong gains for September, but altcoins fell harder in the same risk-off move.
Bitcoin fell 2.7% to $84,148.7 by 02:14 ET (06:14 GMT), extending steep overnight losses. The drop came as a spike in oil prices and Treasury yields ramped up concerns over higher interest rates, pulling broader risk appetite lower and spurring profit-taking after strong gains through September.
Despite the slide, Bitcoin was still sitting on strong gains so far this month, as investors welcomed more regulatory favor from the U.S. government.
Treasury yields hit multi-decade highs
The U.S. 10-year benchmark yield jumped back above 5%, its strongest level since 2007, as robust U.S. purchasing managers index data and hawkish comments from a Federal Reserve Governor ramped up bets on more rate hikes in the coming months. The Fed raised rates by 25 basis points last week and reiterated its commitment to a 2% annual inflation target, which markets interpreted as heralding more increases.
Bond yields surged across the developed world on the same expectations. Japanese 10-year yields hit a 30-year high on Thursday. Higher rates diminish the appeal of risky, speculative investments like Bitcoin, given that debt usually offers better returns in such environments.
Adding to the pressure, oil prices rebounded overnight as bets on more U.S.-Iran diplomacy appeared to be overstated. The rebound was fueled by a strongly worded address by Iranian President Masoud Pezeshkian at the United Nations General Assembly in New York, where he took aim at the U.S. and President Donald Trump.
Altcoins track Bitcoin losses
Broader crypto prices fell further on Thursday, extending overnight losses as weak risk appetite spurred more profit-taking. Ether fell 2.5% to $2,685.83. XRP fell 7.5% to $1.5052.
Solana fell 3.3%. Cardano slid 7.1%. BNB shed 2.5%. Dogecoin slid 7.7%.
Optimism over more U.S. regulatory favor, especially after the SEC announced a five-year exemption to blockchain-based stock offerings, had sparked outsized gains in altcoins. That move helped markets largely look past the failure of the Clarity Act in clearing Congress.
Source: Cryptocurrency News (Investing.com)
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