Bitcoin has fallen to around $83,000 due to a surge in U.S. Treasury yields. The yield on the 10-year Treasury note has reached its highest level in 19 years, and if this week's U.S. inflation and employment data comes in stronger than expected, Bitcoin could drop further to test the $80,000 mark.
As of 8 a.m. on September 29, Bitcoin was trading at $83,487, down 0.86% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Major altcoins showed mixed performance. Ethereum rose 0.41% to $2,685, while Solana increased 2.35% to $118.42. In contrast, Binance Coin (BNB) fell 1.65% to $761.70, and Ripple (XRP) decreased 1.03% to $1.49.
The biggest factor weighing on the cryptocurrency market is the U.S. Treasury yields. The 10-year Treasury yield closed at 5.241%, marking a 19-year high, and briefly peaked at 5.272%. The 30-year Treasury yield also climbed to 5.561%, the highest level since June 10, 2002.
Market participants are closely watching the upcoming U.S. Personal Consumption Expenditures (PCE) price index and employment data. If inflation and employment figures are stronger than anticipated, the likelihood of further interest rate hikes by the Federal Reserve could increase, potentially pushing Treasury yields even higher and adding downward pressure on Bitcoin.
Trading News, an investment-focused media outlet, predicts that if both the core PCE price index and employment data are robust, the 10-year Treasury yield could rise to around 5.30%, with the probability of a rate hike exceeding 80%. In this scenario, Bitcoin could fall below the support level of $82,744 and dip below the benchmark of $81,143 set on September 20, testing the $80,000 mark.
Meanwhile, in the domestic market, Bitcoin saw a slight increase. As of 8 a.m., it was trading at 1,135,760,000 won on Bithumb, up 0.55% from the previous day. The so-called 'Kimchi premium,' which indicates how much higher domestic prices are compared to international prices, was recorded at 0.19%.
* This article has been translated by AI.
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