Bitcoin held near $84,000 even as the 10-year Treasury yield hit 5.22%, its highest level since 2007. Traders cut $1.7 billion in leverage across major exchanges, compared with a roughly 2.3% dip in Bitcoin's price over the same stretch. Upcoming inflation and jobs data will show whether Bitcoin can keep resisting the pressure from surging bond yields.
Bitcoin is holding inside a roughly $83,000 to $85,000 range even as a historic bond selloff pushes borrowing costs to their highest levels in decades. The benchmark 10-year Treasury yield climbed to 5.22%, its highest since 2007. Separately, the 30-year yield touched a fresh 22-year high of 5.5185% before trading around 5.511%.
Treasury yields raise Bitcoin's opportunity cost
The rise in yields raises the hurdle for Bitcoin by offering investors returns above 5% on government debt while lifting financing costs across the financial system. Yet Bitcoin has gained about 22% since Aug. 19 even as the 10-year real yield climbed 50 basis points, according to Bitwise analyst Camran Khosravi.
Pressure has built for months. Jefferies noted the 10-year yield is on track for a seventh consecutive monthly increase, which would tie the longest such streak since 1970. A $44 billion sale of seven-year notes cleared at 5.085% Thursday, the highest auction yield since April 1993, according to James Lavish of Bitcoin Opportunity Fund.
Traders cut leverage without a matching price drop
Bitcoin's adjustment has shown up more in derivatives than in spot price. Combined open interest across Binance, Gate.io, HTX and Bybit fell to about $10.3 billion on Sept. 25 from $12 billion on Sept. 22, a $1.7 billion, or 14.3%, drop in leverage, according to CryptoQuant. By contrast, Bitcoin itself fell only about 2.3% over the same period.
The reduction was broad-based, led by a roughly $710 million decline on Gate.io and a $680 million drop on Binance. CoinGlass data show liquidation clusters around $85,300 to $85,700 above the current price, with additional pockets near $83,000 and $80,000 below.
Next, the Fed's preferred PCE inflation gauge lands Sept. 30, followed by the September employment report on Oct. 2. Strong readings could give bond traders reason to push yields higher still, testing Bitcoin's resilience further.
Source: CryptoSlate
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