Bitcoin slipped to around $83,200 during Asian trading on September 24 as rising US Treasury yields and expectations of another Federal Reserve rate hike pressured crypto markets.
The 10-year Treasury yield reached 5.13% on Wednesday, its highest since 2007, before closing at 5.11%, up from 4.96% a day earlier, according to Cointelegraph.
Another Fed Hike Comes Into Focus
At the time of the report, CME’s FedWatch tool showed a 75.3% probability of an October 28 increase to 4%–4.25%.
Higher yields make government debt more competitive with riskier investments. Rising borrowing costs can also make leveraged Bitcoin positions more expensive to maintain.
Related: Fed Raises Rates for the First Time Since 2023 as Inflation Persists
Bitcoin Still Holds September Gains
Despite the decline, Bitcoin remained 7.35% higher for September at the report’s snapshot.
FOREX.com analyst James Stanley offered some perspective:
“BTC has held up well even with surging rates and a strong USD.”
He identified $82,833 as a level to watch if the pullback deepens.
Bitcoin’s September recovery faces a tougher interest-rate backdrop. The next inflation and jobs figures could matter more than hopes for a seasonal October rally.
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