Bitcoin dropped to a 17-day low below $83,000 as Middle East tensions and surging Treasury yields pushed investors away from riskier assets. The broader crypto market has shed $110 billion in 36 hours, with most major altcoins following bitcoin lower.
Bitcoin's slide that began Wednesday morning continued through Thursday, with the asset dipping to $82,200 for the first time in over two weeks. It last traded around $83,000, while the total crypto market cap has shed $110 billion in 36 hours, going from $2.92 trillion to $2.81 trillion.
Bitcoin Hits 17-Day Low
The previous week ended with sharp volatility after weaker-than-expected US labor data for September, which first sent bitcoin up to $87,250 before a painful reversal. The coin crashed by over $3,000 within hours and slipped below $84,000, then rebounded toward $87,000 again on Sunday and Monday before another rejection took the bulls by surprise. Bitcoin's market cap has dropped to $1.660 trillion on CMC. Its dominance over altcoins has remained flat at 59%.
Middle East Tensions and Rising Yields Weigh on Crypto
Oil prices rose sharply on Thursday after a report said the US was considering renewed military action against Iran amid a standoff in the Strait of Hormuz. The jump in oil added to concerns that energy-fueled inflation will pressure economies and invite further monetary tightening. Minutes from the Fed's September meeting, released overnight, showed policymakers turning broadly hawkish in the face of rising inflation. That in turn spurred gains in Treasury yields, with the benchmark 10-year yield hitting a fresh 24-year high on Wednesday, which tends to diminish the appeal of speculative assets over debt.
Altcoins Mostly Follow Bitcoin Lower
Most larger-cap altcoins traded in the red, led by a 6% decline for Zcash to $1,240, while XRP, HYPE, and Chainlink each posted 3-4% drops. Separately, Ether fell 1.2% to $2,566.85, according to Investing.com. XRP dipped 2.8% on the same measure. Solana announced a partnership with Samsung under which Samsung Wallet and Samsung Pay will support stablecoin transactions through the network starting in late October, but its token fell 2.2% on Thursday regardless.
Not every token slipped. BTW gained over 11%, while JUP, RAY, CRV, and ALGO rounded out the day's double-digit gainers.
Sources: CryptoPotato, Investing.com
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