Bitcoin held near $74,000 on Wednesday while US stocks rallied and the 10-year Treasury yield returned to 5%. Higher-than-expected US inflation data pushed yields up, and traders now await a new catalyst.
Bitcoin circled $74,000 at Wednesday's Wall Street open as stock markets rallied and US bond yields surged. The cryptocurrency failed to follow equities higher, diverging from tech stocks that investors resumed buying on the dip.
Tech stocks rally as the 10-year yield returns to 5%
CoreWeave jumped over 20% after reporting better-than-expected Q3 revenue and lifting its 2026 guidance. Nvidia, which suffered on Monday and Tuesday amid controversy over CEO Jensen Huang, opened around 2.5% higher.
Stocks rose even though Tuesday's CPI report came in higher than expected and pushed yields sharply up. The 10-year yield returned to 5% on Wednesday for the first time since Oct. 29, while the 30-year yield reached as high as 5.378%.
Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said bonds were pricing in a more hawkish Federal Reserve. Markets have priced in a 0.25% rate hike in December, and the odds of a 0.5% move are now increasing. Meanwhile, oil gained on the day: US WTI crude rose 1.4% to $87.70 per barrel.
BTC stays between two trend lines
Bitcoin continued to trade in a narrow range between its 21-week and 50-week simple moving average at $73,078 and $75,492, respectively. Volatility cooled as traders awaited a new catalyst after the CPI report.
Investor profitability suffered as Bitcoin lost support around $75,700, the aggregate cost basis of the short-term holder cohort. On Tuesday, those wallets sent over 47,000 BTC to exchanges at an unrealized loss, potentially signaling an increase in panic selling if those coins were sold.
Source: Cointelegraph
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