Summary
- Bitcoin (BTC) remained near $84,000 on Tuesday, up 0.9% for the day, while Bitcoin ETFs saw inflows totaling around $3 billion over eight consecutive days.
- The yield on 10-year Treasury bonds has hit its highest level since 2007, while Brent crude prices have declined from recent peaks.
- Futures markets now indicate a 70.3% likelihood of a Federal Reserve rate hike in October, an increase from 55.4% the previous week.
On Tuesday, Bitcoin was priced at approximately $84,000, reflecting a 0.9% increase over the past 24 hours, although it has seen a 2% decline over the week, according to CoinGecko. The cryptocurrency has been trading in this range for two weeks, influenced by external market pressures.
The rising Treasury yields, at multi-year highs, have been a significant factor, particularly the 10-year yield which reached 5.274% on Monday, the highest since June 2007. Meanwhile, the 30-year yield also rose to 5.583%, the highest since 2002. Both yields eased slightly on Tuesday as crude oil prices fell following a spike earlier in the week. Brent crude oil had surged past $100 per barrel on Monday but dropped to below $104, partly due to ongoing indirect negotiations between the U.S. and Iran and Saudi Arabia resuming pipeline flows.
According to Kyle Rodda, a senior analyst at Capital.com, the rise in crude oil prices is dampening the appeal of non-yielding assets like Bitcoin, temporarily halting its upward momentum. He suggests that Bitcoin may struggle to gain traction as long as energy market risks persist, although he considers the current price action a consolidation phase within a short-term uptrend.
