Bitcoin Slips Below $64K as Rising Bond Yields Lift Rate-Hike Bets
Bitcoin dipped under $64,000 Thursday as surging US Treasury yields increased the odds of further Fed rate hikes, pressuring crypto markets.
Bitcoin tumbled beneath the $64,000 threshold Thursday as a sharp rise in US bond yields rekindled fears of additional Federal Reserve interest rate hikes, sending the world's largest cryptocurrency into a volatile stretch of intraday selling pressure.
Surging Treasury yields typically signal that investors are pricing in a more aggressive monetary policy stance from the Fed, a backdrop historically unfavorable for risk assets like Bitcoin. Higher borrowing costs reduce the appeal of speculative investments by making safer, yield-bearing instruments comparatively more attractive.
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Avoiding a steeper selloff, however, was what traders described as a Binance "plunge protection team" — bid liquidity that emerged on the exchange to absorb downside pressure and cushion Bitcoin from a more severe price rout. The intervention appeared to stabilize prices near the key support level, preventing a decisive breakdown.
The episode underscores the fragile equilibrium currently facing digital asset markets, caught between macro headwinds driven by sticky inflation data and structural buying support from large trading platforms. Traders are closely watching whether Bitcoin can reclaim and hold ground above $64,000 as a gauge of near-term sentiment.
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