Bitcoin has continued its downward trend, falling below the $84,000 mark. This decline is attributed to rising U.S. Treasury yields and ongoing inflation concerns stemming from tensions in the Middle East, which have dampened investor sentiment towards riskier assets.
As of 8 a.m. on October 8, Bitcoin was trading at $83,151, down 2.73% from the previous day. After fluctuating around $85,000, Bitcoin dropped below the $84,000 threshold within a day.
Major altcoins also experienced losses. Ethereum fell 4.87% to $2,566, while Ripple (XRP) dropped 5.44% to $1.41. Solana also saw a significant decline, trading down 3.97% at $116.
The primary factor behind this decline is the surge in U.S. Treasury yields. On October 7, the yield on the 10-year Treasury note exceeded 5.36%, marking its highest level since 2002. The yield on the 30-year Treasury bond also rose to around 5.73%. The increase in international oil prices due to Middle Eastern tensions has heightened inflation fears, leading to a stronger dollar and prompting investors to withdraw funds from riskier assets, including Bitcoin.
The CoinMarketCap 'Fear and Greed Index,' which reflects investor sentiment in the cryptocurrency market, recorded a score of 61 (Greed) on this day, down from 73 (Greed) the previous month. A higher score indicates stronger market optimism, while a lower score suggests a greater tendency towards risk aversion.
Uncertainty surrounding the U.S. Federal Reserve's monetary policy also adds to the pressure. The minutes from the Federal Open Market Committee (FOMC) meeting released on October 7 reaffirmed concerns about inflationary pressures. While the market largely anticipates a pause in interest rate hikes this month, there remains speculation about the possibility of further increases later this year.
Industry experts believe that Bitcoin prices will remain sensitive to movements in U.S. Treasury yields and the dollar in the near term.
Meanwhile, at the same time, Bitcoin was trading at approximately 113.55 million won ($84,675) on the domestic exchange Bithumb, reflecting a 0.47% increase from the previous day. The 'Kimchi premium,' which indicates the domestic price is higher than the international price, stood at 1.98%.
* This article has been translated by AI.
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