Bitcoin Slides 2.6% as Rising Yields Test August Rally
Bitcoin entered September under pressure after a sharp rally in August, as rising global bond yields and oil prices curbed appetite for risk assets. Higher borrowing costs can weigh on speculative investments, while the strong prior-month advance left the cryptocurrency vulnerable to profit-taking. The pullback is an early test of whether August’s momentum can withstand a less favorable macroeconomic backdrop.
Bitcoin fell more than 2.6% over Sept. 1-2. The decline has not been accompanied by signs of excessive leverage in derivatives markets, while net inflows into bitcoin exchange-traded products reached a record in August, pointing to continued investor demand. Traders are now watching the $76,400-to-$76,800 area as a key support zone that could determine whether the retreat remains a consolidation or develops into a deeper correction.
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The history behind this eventBitcoin Falls Below $79,000 as Bond Yields Rise and Inflation Fears Mount
Bitcoin is highly sensitive to interest rates and dollar liquidity. When US Treasury yields rise, non-yielding assets become relatively less attractive to hold. The latest decline coincided with losses in stocks and gold, reflecting traders’ reassessment of the Federal Reserve’s rate-hike path amid inflation concerns. The move was therefore not confined to the crypto market.
Around May 15, Bitcoin fell about 3% in a single day, breaking below $79,000 and touching $78,000 before sliding below $77,000 to a low of about $76,000. Liquidations of bullish crypto positions reached $500 million, while SOL and XRP each dropped about 5%. US Treasury yields neared 20-year highs, although Bitcoin’s implied volatility remained low.
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