On Tuesday, Bitcoin hovered around $64,100, gaining 1% for the day and maintaining its position above $64,000, despite increasing bond yields and rising oil prices dampening the appetite for riskier assets, according to CoinDesk data.
Ether remained close to $1,893, while other major cryptocurrencies showed little movement, with Hyperliquid being a notable exception, surging 8.3% this week.
The pressures affecting the market stem from both bonds and crude oil. The yield on 30-year Treasury bonds climbed to 5.33%, marking the highest point since 2007, as investors seek higher returns to finance heavily indebted governments and protect against persistent inflation. Long-term yields rose globally, leading to a 0.5% drop in S&P 500 futures, indicating a third consecutive day of losses.
Brent crude oil prices exceeded $91 per barrel amid escalating tensions in the US-Iran conflict, with former President Trump threatening military action against Oman if it disrupts US operations.
This combination of factors has created a macroeconomic headwind that has constrained cryptocurrency markets throughout the summer, a trend that appears to be intensifying. Rising oil prices contribute to inflation, which in turn drives up yields and increases borrowing costs, leading to a withdrawal of capital from risk assets and reinforcing the expectation of tight monetary policy from central banks. Bitcoin is part of this risk landscape, resulting in a marginally negative outlook.
Notably, Bitcoin has managed to maintain its strength. It has registered gains for the day and remains positive for the week, contrasting with the decline in stock markets and the surge in yields. This relative resilience may suggest a return of demand for exchange-traded funds (ETFs) rather than a struggle against it. Observers will be keen to see if Bitcoin can continue this divergence.
A breakthrough above $64,500 would bolster the argument that new buyers are absorbing the macroeconomic pressures, whereas rising oil prices approaching $100 and further increases in yields could quickly test this resilience.