Bitcoin dipped 0.13% to $85,830.7 on Tuesday as a surge in global bond yields offset optimism over a new CFTC framework for leveraged crypto trading. Bitcoin ETFs posted $89.90 million in net outflows Monday even as Blackrock's IBIT kept buying, while the price compressed between $85,131 and $86,375 as traders waited for a breakout.
Bitcoin fell 0.13% to $85,830.7 by 05:35 ET (09:35 GMT) on Tuesday, extending losses from the prior session as a surge in global bond yields largely offset optimism over more favorable U.S. regulation. Broader crypto prices fell alongside bitcoin, pulling back further from the gains made over the past three months.
Soaring yields rattle bitcoin
10-year U.S. Treasury yields hit a 24-year high on Monday, while Japanese 10-year yields stayed pinned at 30-year highs and UK 10-year yields held at 19-year highs. Yields climbed amid growing concern over stretched fiscal conditions in developed economies, as surging oil prices and bets on another interest rate hike also spurred selling in bond markets.
Higher yields tend to diminish the appeal of speculative, risk-heavy assets like crypto. But bitcoin found some support from bets that bond market trouble may hurt the dollar, which spurred plays into alternative assets like crypto and gold.
CFTC opens door to leveraged crypto framework
The Commodity Futures Trading Commission on Monday opened a 50-day public comment window to consider a regulatory framework covering leveraged digital asset transactions offered to retail investors. The proposal aims to create a dedicated registration subcategory for platforms facilitating leveraged, financed, or margin trades, with compliance safeguards meant to curb fraud while protecting retail traders. It follows the SEC's exemption for tokenized stock offerings weeks earlier, adding to hopes for more U.S. regulatory favor toward crypto.
ETF flows diverge as Blackrock keeps buying
U.S. bitcoin ETFs lost $89.90 million in net outflows on Monday as withdrawals from Ark & 21Shares' ARKB and Fidelity's FBTC outweighed another sizable allocation into Blackrock's IBIT. ARKB recorded an $85.21 million exit, while FBTC shed $74.55 million; IBIT attracted $69.85 million, showing institutional appetite stayed concentrated in select products even as the broader category moved lower.
Bitcoin ETF trading value reached $2.18 billion on Monday, with net assets closing at $110.77 billion. Ether ETFs, meanwhile, extended their outflow streak to five consecutive sessions with a $50.76 million withdrawal.
Bitcoin compresses as traders wait for a breakout
Bitcoin traded in a narrow range between $85,131 and $86,375 on Tuesday, with the price near $86,163 toward the upper end of that band. The rising 100-hour moving average at $85,373 has offered support on dips, while a move above the $87,374 swing high would raise the bullish bias and open the door toward $90,000.
Sources: Cryptocurrency News, Bitcoin News, Investinglive RSS Breaking News Feed
Trading involves risk.
Risk Disclaimer
