Bitcoin slips as Treasury yields reach 5.27% and crypto market loses $700 billion

  • Analysts identified a potential 6% level for the 10-year Treasury yield.
  • The 10-year Treasury yield closed at 5.23% after reaching 5.27%.
  • Bitcoin roughly doubled to $86,000 as the yield rose from late 2023.

Bitcoin fell 2.3% over the past week to $83,876.47 as higher U.S. Treasury yields and declines in major stock indexes weighed on risk assets. The 10-year Treasury yield reached 5.27% before closing at 5.23%, following the Federal Reserve's recent rate increase. Analysts have identified a potential move to 6% amid concerns over federal deficits, rising debt and competition for capital. Bitcoin roughly doubled to $86,000 after the 10-year yield rose to 5.23% from late 2023. A yield increase driven by fiscal concerns could prompt investors to consider alternatives to government debt, potentially benefiting Bitcoin, while an increase caused by renewed Federal Reserve tightening could pressure the cryptocurrency. Bitcoin had traded around $83,000-$85,000 after rebounding from a weekend low near $80,000 and briefly exceeding $87,000, but repeated attempts to sustain gains above $85,000 and $87,000 failed. The broader crypto market lost more than $700 billion over 48 hours, while more than $400 million in long positions were liquidated. U.S.-listed spot Bitcoin ETFs had previously attracted about $2.4 billion in weekly net inflows, but later recorded more than $23 million in outflows after seven consecutive positive-flow days.

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