Bitcoin (BTC) and other cryptocurrencies are sharply lower on Sept. 24 as yields on U.S. Treasury yields rise to their highest level in nearly 20 years.
In early trading, Bitcoin was changing hands at $83,500 U.S., down from $86,000 U.S. at the start of the week.
Other digital assets such as Ethereum (ETH), Solana (SOL), and XRP (XRP) were also firmly in the red as risk assets decline with government bond yields experiencing an upsurge.
Crypto is being pulled lower as the yield on the 30-year Treasury hits 5.44%, its highest level since 2004. The yield on the 10-year Treasury has reached 5.15%, a level last seen in 2007.
The yields on U.S. government bonds are climbing as traders on Wall Street peg the odds that the U.S. Federal Reserve raises interest rates 25-basis points at its Oct. 28 meeting at 75%.
Higher yields on government bonds make U.S. Treasurys more attractive to investors and lead them to shift capital out of riskier assets such as crypto and stocks.
Stocks in the U.S. and around the world are in decline as Treasury yields move higher and pressure risk assets.
Despite the current selloff, Bitcoin’s price remains above the key threshold of $80,000 U.S., which analysts say is an encouraging sign.
Prior to U.S. Treasurys rattling markets, Bitcoin had risen 32% since the end of August, jumping from just below $65,000 U.S. to just above $86,000 U.S.
Analysts say BTC needs to remain above $80,000 U.S. for a sustained rally to occur.
