Stories
Bitcoin Plunges 4% to $83,881 as US 10-Year Yield Hits 2007 High, Rate-Hike Bets Soar
- •Bitcoin dropped 3.80 percent to $83,880, influenced by stronger-than-expected US business activity pushing the 10-year US Treasury yield to its highest since 2007 and increasing October rate-hike expectations to around 70 percent.
- •The decline was amplified by approximately $280 million in Bitcoin long liquidations over four hours, weakening short-term momentum.
- •Despite short-term volatility, institutional demand remains strong, with US spot Bitcoin ETFs recording nearly $1 billion in daily net inflows.
- •Analysts suggest Bitcoin's immediate support lies at $83,500–$84,000, with resistance at $85,000–$86,000, while the market stabilizes but a sustained recovery is unconfirmed.
- •Investors are advised to stagger fresh purchases, keep leverage low, and define exits due to potential sharp moves from macro data, as rising US borrowing costs pose a key macro concern.
Key Questions Answered
Bitcoin fell nearly 4% to $83,881 as stronger-than-expected US business activity pushed the 10-year US Treasury yield to its highest level since 2007. This surge lifted October rate-hike expectations to around 70 percent and was further amplified by approximately $280 million in Bitcoin long liquidations over a four-hour window.
Bitcoin's immediate support lies in the $83,500–$84,000 range, followed by $82,000, while immediate resistance is established between $85,000 and $86,000. Two-hour relative strength index readings near 43 indicate weak momentum, leaving a sustained market recovery unconfirmed.
Despite short-term price volatility and weaker momentum, institutional demand remains encouraging with US spot Bitcoin ETFs recently recording nearly $1 billion in daily net inflows. This indicates that larger investors continue to accumulate cryptocurrency even as macro conditions tighten.
