Bitcoin Stumbles as Treasury Yields Spike

Money flowing into crypto funds has slowed sharply. Since mid-July the total stood at $11.1 billion, yet fresh inflows have dried up in recent weeks.

The main culprit is the US bond market. Ten-year Treasury yields climbed above 5.3 % and thirty-year yields reached 5.7 %, the highest levels in more than twenty years. September alone added over 50 basis points — the worst month for government bonds in four years.

The Treasury tried to ease the pressure by doubling its purchases of long-term bonds to at least $4 billion per operation, but the move failed to calm investors worried about fiscal sustainability and higher oil prices.

CoinShares head of research James Butterfill argues that the bond market now matters more to Bitcoin than Fed signals. Weak September jobs data cut the odds of an October rate hike to 23 %, yet the crypto market has not mounted a convincing rally.

Based on information from cryptonews.net