Bitcoin deepens its losses to the lowest 3 weeks due to the yield on US bonds
The prices of the digital currency “Bitcoin” fell during trading on Friday, deepening its losses for the third day in a row, recording the lowest level in three weeks, in light of the risk aversion in the encrypted market, due to the rise in the yield on US bonds.
This development in the US bond market follows the comments of some Federal Reserve officials, which opened the way for further increases in US interest rates, reaching 6% as a neutral rate.
Bitcoin price today
On the Bitstamp exchange, the digital currency “Bitcoin” fell by $170, equivalent to 0.8%, to $21,633, the lowest since January 23, and the opening price of today’s trading at $21,803, and it recorded the highest level at $21,939.
When prices were settled on Thursday on the Bitstamp Stock Exchange, bitcoin prices lost 5.1%, the second consecutive daily loss, and the largest daily loss in 2023, specifically since November 9.
On Friday, the market value of digital currencies fell by nearly $10 billion to a total of $1.010 trillion, which is the lowest level since January 20, in light of the downward wave that currently controls the prices of Bitcoin, Ethereum, and other major currencies.
The return on the bonds
The yield of US Treasury bonds for ten years rose on Friday by 1.5%, to extend its gains for the third session in a row, recording the highest level in five weeks at 3.715%, which undermines the appetite for risk in the markets.
The yield on US bonds is at a 5-week peak…why?
Comments from Federal Reserve officials John Williams, Neil Kashkari and Christopher Waller this week included a clear message that monetary policy in the US should remain austere for a while.
Those comments also gave more strength to the bets that point to the continuation of raising US interest rates until reaching the neutral interest rate at the level of 6%.
Will bitcoin prices drop below $20,000 soon?
It is not excluded that the prices of the largest cryptocurrency in the world will fall below the psychological barrier at $ 20,000, if the US Treasury yield continues to rise, and investors remain reluctant to take risks in high-yield markets.