Bitcoin slipped to $85,540.7 on Tuesday as surging global bond yields offset optimism over friendlier U.S. crypto rules. The CFTC opened a comment window on a leveraged-trading framework the same day Binance reserves fell to a three-year low after heavy outflows.
Bitcoin fell 0.26% to $85,540.7 by 01:58 ET on Tuesday, extending losses from the prior session. A surge in global bond yields largely offset optimism over more positive U.S. regulation, pulling broader crypto prices down with it. Still, markets remained hopeful that a historical trend of crypto strength in October would play out again this year.
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. Growing concern over stretched fiscal conditions in developed economies drove the move, alongside surging oil prices and bets on further rate hikes. Higher yields tend to diminish the appeal of purely speculative, risk-heavy investments like crypto. But bitcoin found some support from bets that bond market trouble may weigh on the dollar, pushing some investors into alternative assets like crypto and gold.
CFTC opens door to leveraged crypto trading
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 arrived just weeks after the SEC announced an exemption for tokenized stock offerings, adding to hopes of friendlier U.S. treatment of crypto.
Binance outflows hit a three-year high
Separately, nearly 40,000 BTC, worth about $3.3 billion, left Binance since Sept. 20, when the exchange's reserves stood at 704,800 BTC. Reserves have since fallen to 663,100 BTC. Binance recorded 23,100 BTC in net outflows last week, the highest weekly level since June 2023, after another 14,300 BTC left the exchange in a single day, exceeding the prior week's 13,800 BTC outflow.
Altcoins slide alongside Bitcoin
Broader crypto prices fell tracking the decline in Bitcoin. Ether fell 1.16% to $2,693.16, while XRP fell 1.6%. Solana and Cardano each fell 1.6% and 1.1%, respectively, and BNB shed 1.8%. Among memecoins, Dogecoin fell 1.8% and $TRUMP fell 2.9%.
Sources: Cryptocurrency News, Coinpedia Fintech News
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