Bitcoin pared earlier losses to trade flat on Thursday as surging Treasury yields, a jump in oil prices, and hawkish Federal Reserve signals pressured risk sentiment. The 10-year Treasury yield hit its strongest level since 2007, while broader crypto held onto weekly gains from a Monday rally.
Bitcoin was unchanged at $84,420.2 by 17:53 ET (21:53 GMT) on Thursday, clawing back losses tied to a broader risk-off move. The world's largest crypto still holds strong gains so far in September as investors welcome more U.S. regulatory favor.
Treasury yields hit a 19-year high
The U.S. 10-year yield jumped back above 5%, its strongest level since 2007, as robust purchasing managers index data and hawkish comments from a Federal Reserve governor lifted bets on more rate hikes in the coming months. The Fed raised rates by 25 basis points last week and reiterated its commitment to a 2% annual inflation target, which markets read as a signal of further tightening ahead.
Bond yields surged across developed markets on the same rate-hike expectations, and Japanese 10-year yields hit a 30-year high on Thursday. Higher rates diminish the appeal of speculative assets like Bitcoin, since government debt typically offers better returns during a rate hike cycle.
Oil surge compounds the pressure
Oil prices extended their surge on Thursday as hopes for U.S.-Iran diplomatic progress faded. The move was fueled by a strongly worded address from Iranian President Masoud Pezeshkian at the United Nations General Assembly in New York on Wednesday, in which he took aim at the U.S. and President Donald Trump.
Altcoins recoup losses on regulatory optimism
Broader crypto prices mostly recovered their losses, following Bitcoin, and were largely sitting on weekly gains after Monday's rally. Optimism over further U.S. regulatory favor helped altcoins outperform, after the SEC announced a five-year exemption for blockchain-based stock offerings. The move helped markets largely look past the failure of the Clarity Act in Congress.
Ether added 0.4% to $2,687.72, while XRP climbed 3.2% to $1.5470.
Source: Investing.com
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