Bitcoin experienced a decline, trading at approximately $83,200, as the US 10-year Treasury yield surged to its highest level since 2007, closing at 5.11%. This spike in yields is attributed to stronger US business data and rising oil prices.
Market analysts are increasingly anticipating a Federal Reserve rate hike, with current odds reaching about 75%. This potential tightening could affect Bitcoin and other risk assets, as higher yields typically lead to increased borrowing costs.
Despite the recent pullback, Bitcoin has shown resilience, having closed higher in September for the past three years. Historically, October has been a favorable month for Bitcoin, averaging a 19.92% gain, although last year saw a decline.
As traders monitor economic indicators, the upcoming Fed meeting on October 28 could further influence Bitcoin's trajectory, especially if labor data continues to show strength or if hawkish signals emerge from the Fed.
With the market's focus on potential rate hikes, Bitcoin's next key support level is identified at $82,833, as analysts suggest that rising Treasury yields may weigh heavily on the cryptocurrency's performance in the near term.