Bitcoin’s Strong Q3 Faces Challenges from Rising Treasury Yields
- Bitcoin (BTC) recorded a remarkable 43% gain in the third quarter, marking its best performance since 2017.
- Despite recent gains, Bitcoin faces resistance due to Treasury yields exceeding 5%, making risk-free investments more appealing.
- The price of Bitcoin briefly surpassed $87,000 last week before correcting lower.
- The US economy added only 29,000 jobs in September, significantly below the forecast of 80,000, impacting interest rate expectations.
- CME Group’s FedWatch Tool now estimates the odds of an October rate hike at around 24%, down from over 75%.
Bitcoin’s recent rally has been supported by interest in the debasement trade as investors react to rising federal deficits and government borrowing costs. The disappointing job growth signals a potential easing in Federal Reserve rate hikes, which could influence Bitcoin’s market dynamics.
With a gain of over 35% since mid-August, Bitcoin continues to navigate challenges posed by high Treasury yields and changing economic indicators.(Source)
