Key Takeaways
Bitcoin fell as 10-year U.S. Treasury yields hit their highest level since 2007, climbing above 5% on Wednesday.
According to Bitcoin Magazine, bitcoin's price slumped on Wednesday as U.S. Treasuries surged, with the 10-year yield climbing above 5% for the first time since 2007. Bitcoin traded at $84,357 on Wednesday afternoon in New York, down 2% over a 24-hour period, after previously surging as high as nearly $87,330 earlier in the week as investors piled into exchange-traded funds.
The price decline coincided with the U.S. Treasury Department announcing plans to purchase up to $6 billion of longer-dated government debt on Thursday. The 10-year Treasury yield rose following flash PMI data that beat forecasts and pushed the composite index to a five-year high. Additionally, inflation details showed input costs across manufacturing and services rising to their highest level since October 2022, driven by fuel, transportation, and wage pressures.
Bitcoin Magazine reported that rising yields present a headwind for bitcoin, as safe government bonds paying 5% make non-income-generating assets more expensive while strengthening the dollar and dampening risk-on appetite. Bitcoin has repeatedly retreated this year amid rising yields driven by inflation fears, with ETF outflows and forced selling by leveraged traders further amplifying the movements.
Source & Fact-Check Note
https://bitcoinmagazine.com/news/bitcoin-price-slips-while-yields-soar
