Bond Market Shock Sends Bitcoin Below $83K as Risk Appetite Fades
Bitcoin fell below $83k in the last 24 hours as a big selloff in the bond market put a damper on attitude toward risk assets like cryptocurrency. Strong U.S. economic data and a spike in global crude oil prices have revived fears of possible U.S. Federal Reserve interest rate hikes and sparked a selloff in U.S. bond markets. The yield on the long-dated thirty-year bond increased to a 22-year high of 5.442 percent after strong PMI data. The U.S. economy showed a surprise jump in both manufacturing and services activity, according to the latest data. The September Flash PMI showed the manufacturing PMI rising to 57 from 53.9 and the services PMI rising to 58.7 from 56.5. The CME FedWatch tool shows more than a 70% chance that the Federal Reserve will hike rates a quarter percentage point in October. The large rise in bond yields in the United States has had a considerable effect on the attitude around the cryptocurrency market. Long-dated thirty-year bonds have seen a substantial gain of 0.61 percent overnight, trading at 5.435 percent. The yield on the benchmark 10-year note jumped 0.35 percentage point, to 5.134 percent. Five-year bond yields rise 0.04 percent to 5.007 percent. Two-year bond yields fall 0.33 percent overnight to 4.879 percent.
The dollar’s rally dragged on the mood in the crypto markets. Meanwhile, the Dollar Index which measures the strength of the U.S. Dollar against a basket of six currencies is now trading at 101.27, up 0.17 percent overnight. Much of the fall in cryptocurrency prices was due to a large sell-off of long positions. In the last 24 hours, total liquidations reached $613 million, with lengthy liquidations forming the majority at $544 million. Liquidations: $69 million with shorts. In the context of a pessimistic projection regarding the future prices of cryptocurrencies, the total market capitalisation of the crypto sector has seen a decrease of 2.6 percent overnight, presently standing at $2.84 trillion. The drop was accompanied by an 8 percent increase in trade volumes. Bitcoin, the biggest cryptocurrency, is currently down 2.4 percent on an overnight basis at $83,510.52, some 34 percent off the all-time high of $126,198. The leading cryptocurrency is up 9.4% this week and 5.4% this month. Losses year-to-date are 4.6 percent. 24-hour trading ranged between $82,907 and $85,906.
Bitcoin Spot ETF products in the U.S. had a decline in net inflows, falling to $347 million on Wednesday, down from $715 million on Tuesday. The leader by net inflows was the iShares Bitcoin Trust ETF with $166 million. The Fidelity Wise Origin Bitcoin Fund saw $143 million in net inflows. at the global ranking of all assets, Bitcoin is still at 12th place by market capitalisation data. The leading cryptocurrency ranks between Broadcom, which is in 11th place, and Saudi Aramco, which is in 13th place. Ethereum is down 2.7 percent at $2,648.96, almost 47 percent below its all-time high of $4,953. The top altcoin is holding on to weekly gains of 8.8% and monthly gains of 7%. Year-to-date losses are recorded at 10.7 percent. The 24-hour trading volume was $2,728.79 to $2,628.69. Net inflows into Ethereum Spot ETF products in the U.S. narrowed to $105 million on Wednesday from $162 million on Tuesday. iShares Ethereum Trust ETF saw the most net inflows at $51 million. Ethereum has slid two places to the 59th position in the global ranking of all assets based on market capitalisation data.
BNB, 4th in rank, dropped 1.5 percent overnight, bringing the price down to $769.69. XRP, a cryptocurrency focused on payments, dropped 6.8 percent overnight to trade at $1.47. XRP is ranked 5th. The 7th ranked Solana dropped 2.8 percent overnight to $113.43, still some 61 percent behind its all-time high of $294.33. Net inflows into U.S.-listed Solana Spot ETF products fell to $14 million on Wednesday from $29 million on Tuesday. TRON is 8th in the overall rankings and is now trading down 1.1 percent at $0.3392. Zcash, which ranks 9th, saw an overnight drop of 8.9 percent and is trading at $1,489.92, down nearly 75 percent from its all-time high of $5,941.80. Hyperliquid, rated 10th, fell 4.6 percent overnight to $90.91, around 7 percent below the all-time high of $97.98. Hyperliquid Spot ETF products listed in the U.S. experienced net outflows of $2 million Wednesday.
