On Thursday, Bitcoin (BTC) fell to lows of $27,740 across major exchanges, the lowest since June. This was alongside a dip in the broader crypto market, with the total crypto market cap dropping over 3% to $1.15 trillion.
Christopher Jaszczynski, a crypto trader and analyst, shared a chart showing Bitcoin price performance. He noted that BTC was back at a key trendline that has acted as support since early this year, and that the benchmark cryptocurrency is trending at a “knife’s edge.”
The dip has come as the stock market also reacted jitterily to Wednesday’s Federal Reserve commentary. Market observers say the Fed is likely to see further interest rate hikes as necessary, and that has investors on edge. As a result, Treasury yields have climbed to recent highs, with the US 10-year Treasury yield rising 6.6 points to 4.324%, and the US 30-year Treasury yield lifting 6.1 basis points to 4.42%.
Higher interest rates are a negative trigger for risk asset investments such as Bitcoin, so further bearish moves are likely. Market analyst TXMC shared an observation that the entire equity run from October to July occurred with real yields capped below their highs, and each break higher incurred a selloff.
It remains to be seen whether Bitcoin can withstand the pressure of the higher real yields, or whether it will slip even further.
