Bitcoin Price Drops 6% While Bond Yields Spike

Kent Tenix

Last Updated: June 11, 2024 2:25 pm

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The world’s top cryptocurrency by market cap, Bitcoin, has hit the $18,000 mark and is still dropping. The crypto has dipped by 6% within the last 24 hours and more in the previous week.

BTC/USD breached the $19,000 triple bottom support when it crashed from $20,000 to $18,000, signaling a major selling sentiment among Investors.

Bitcoin Hits $18,000

There are several reasons for Bitcoin’s bearish run, but most refer back to the Federal Reserve’s aggressive approach to inflation.

Rising Bond Yields: the US 10-year bond yield has risen 3.25% since June, as sell-offs continue to increase. Investors are playing it safe as a result. Thus they are avoiding the more volatile assets like Bitcoin, which is putting more downward pressure on the digital asset’s price.
Fed’s Hawkish Policies: Jerome Powell, head of the Federal Reserves, is staying true to his predecessor’s aggressive approach to inflation, raising interest rates. It appears he is not about to slack off as he reiterated his goal of strengthening the dollar to fight inflation. At writing, the dollar has hit a 20-year high, adversely affecting the price of Bitcoin as well. And finally:
Nord Stream 1 Shutdown: Since Russia closed off the Nord Stream 1 pipeline, gas flow to Europe is on hold. This has scared the market and is causing Bitcoin trading to the tank.

Tech Equities Are Equally Dropping

As the Fed continues to increase interest rates in hopes of building the dollar’s strength, tech equities are equally affected. Both NASDAQ 100 and S&P 500 are dropping in this general bear market. All stock options and Bitcoin are becoming off-limits as investors prepare to weather the interest rate spike by opting out of riskier investments.

Bitcoin’s price surpasses the $19,000 level again after some positive bricks in the last couple of hours. | Source: BTCUSD price chart from TradingView.com

Bitcoin’s Bearish Trend is likely to Continue

There is a question of whether Bitcoin can recover to $20,000. At this rate, it would have to break across the $19,500 mark, which might be difficult. Analysts believe it is possible if demand for the coin soars.

However, crypto influencer Richard Heart is of a different opinion. According to him, Bitcoin still has a long way to drop before rallying. He predicts that the top crypto will at least hit $11,000 before it begins to climb back. At the time of writing, the price of Bitcoin is hovering around $19,000, up 1.31%.

Meanwhile, anticipation continues to increase from the inflation report scheduled for publication on September 13th and the Ethereum mainnet merge slated for the same day.

Featured image from Pixabay and chart from TradingView.com

Kent Tenix

Kent is a talented freelance writer and journalist who creates insightful and thought-provoking content. With over 5 years of experience, she has honed her skills and established herself as an expert in her field. Kent is especially passionate about in-depth reporting and investigative journalism. She thoroughly researches every topic and story she covers to provide readers with comprehensive information and perceptive analysis. Whether she's reporting on crypto, business, technology, or finance, Kent prioritizes accuracy, nuance, and integrity. Her goal with every piece is to inform readers and inspire meaningful conversations and positive change. Kent enjoys traveling, photography, and spending time with her family when she's not tirelessly conducting interviews or poring over data. She hopes to continue using her writing to enlighten and engage audiences on issues that matter.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.