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Bitcoin slipped under 1% to just above $83,100 as rising Treasury yields and oil prices stoked inflation concerns and Fed rate-hike expectations. Zcash led losses among major tokens with a 12% drop, while total crypto market value held near $2.86 trillion.
Bitcoin slipped under 1% to just above $83,100 during Tuesday’s Asian morning session, testing the floor of last week’s trading range, as rising Treasury yields and climbing oil prices fueled inflation concerns and expectations of another Federal Reserve rate increase, according to CoinDesk. Zcash’s ZEC fell 12% to about $1,380, the steepest decline among major tokens, while the total cryptocurrency market value held near $2.86 trillion.
CoinDesk data show the losses were broad but uneven across major tokens. SOL and HYPE each lost between 3% and 4%, DOGE fell 3% and BNB 2%, while XRP dropped nearly 2%. Ether and TRX were flat. Among smaller tokens, The Graph’s GRT jumped 18% and Immutable’s IMX rose nearly 10%, according to FxPro, while UNI and BCH each fell about 10% and DASH lost 7%.
The pressure on risk assets came from bonds and oil. The 10-year Treasury yield reached its highest level since 2007 on Monday and was up one basis point to 5.25% in Asian trading. A higher guaranteed return on government debt raises the bar for holding assets that pay no income, bitcoin among them. Brent crude rose more than 1% to nearly $107 a barrel, its second straight gain, as hopes faded for an imminent diplomatic breakthrough with Iran.
Equity markets showed similar strain. MSCI’s All Country World Index fell to its lowest since Sept. 18, and Nasdaq 100 futures slipped 0.3% after Monday’s tech-led selloff on Wall Street. A widely watched crypto sentiment index stood at 74 out of 100 on Monday, just short of the “extreme greed” zone — a reading that brokerage FxPro contrasted with the fear that has gripped the stock market for the past 20 days.
Macro Rates Pressuring Bitcoin’s Range
The moves matter because they show bitcoin trading increasingly in step with traditional macro forces rather than on crypto-specific news. The main pressure on prices is coming from bond yields and oil: higher Treasury yields make income-bearing assets more attractive relative to bitcoin, while pricier oil feeds into inflation and strengthens the case for the Fed to raise rates again.
Traders have been adding to rate-hike bets, according to the report, and each increase in expected borrowing costs tends to weigh on assets with no yield. Bitcoin’s pullback from above $87,000 has coincided with this repricing. A widely watched sentiment index at 74 out of 100 also suggests crypto investors remain optimistic even as equity markets grapple with fear — a divergence that could resolve quickly if yields keep climbing.
From $87,000 to the $82K Support Zone
Bitcoin has been consolidating within a range after pulling back from above $87,000, and the current decline is testing the lower boundary of that consolidation. Alex Kuptsikevich, chief market analyst at FxPro, noted that previous peaks were formed in May and early September around the $82,000 region, making a retest of that level “entirely to be expected under current conditions.”
Broader financial conditions have been deteriorating in parallel. The 10-year Treasury yield has climbed to levels last seen before the 2008 financial crisis, oil has gained for two consecutive sessions, and global equities have sold off led by technology shares. Bitcoin, which had held up comparatively well, is now drifting toward the bottom of its recent range as those pressures build.
Whether $80,000 Support Will Hold
It remains unclear whether bitcoin will hold the $82,000 support region or break lower. Analysts cited in the report framed $80,000 as a key threshold: a sustained drop below it could signal prolonged weakness, but that outcome is a scenario, not a forecast. The direction depends heavily on forces outside crypto — Treasury yields, oil prices, and Fed policy — none of which are settled.
The cause of Zcash’s 12% decline, the steepest among major tokens, was not explained in the source material, and it is not yet clear whether the drop reflects project-specific news or broader market flows. Wednesday’s inflation reading could also reset expectations in either direction.
Wednesday’s PCE Inflation Report
The next read on inflation arrives Wednesday, when the Commerce Department publishes August’s personal consumption expenditures price index — the gauge the Fed watches most closely. A hotter-than-expected reading would add to rate-hike bets and could push Treasury yields higher still, intensifying the pressure behind bitcoin’s pullback from above $87,000. A cooler reading would likely ease that pressure. Traders will also be watching oil prices, given the fading prospects for a diplomatic breakthrough with Iran, and whether bitcoin holds the $82,000 support zone identified by FxPro.
Key Questions
Why did Bitcoin fall to around $83,100?
Bitcoin slipped under 1% as rising Treasury yields and oil prices fueled inflation concerns and expectations of another Federal Reserve rate increase, according to CoinDesk. Higher yields on government debt make non-income-bearing assets like bitcoin comparatively less attractive.
Why did Zcash (ZEC) drop 12%?
ZEC fell about 12% to roughly $1,380, the steepest drop among major tokens, according to CoinDesk data. The source material did not specify a cause, and it is unclear whether the decline reflects project-specific news or broader market flows.
What is the total cryptocurrency market value right now?
Total crypto market value sat near $2.86 trillion, according to the report, despite the declines across many major tokens.
What price levels are analysts watching for Bitcoin?
FxPro’s Alex Kuptsikevich pointed to the $82,000 region as support where peaks formed in May and early September, and said a sustained drop below $80,000 could signal prolonged weakness, while renewed momentum could push bitcoin above $90,000.
What economic data comes next that could move markets?
The Commerce Department publishes August’s PCE price index on Wednesday, the inflation gauge the Fed watches most closely. A hotter-than-expected reading would add to rate-hike bets and potentially push Treasury yields higher, adding pressure on bitcoin.
Source: rss
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