On the Chain: Bitcoin steadies near US$84,000 as bond rout tests crypto rally

Bitcoin has steadied around US$84,000 after coming under pressure from surging global bond yields and oil prices, while several major altcoins are attempting to recover from Thursday’s risk-off sell-off.

The world’s largest cryptocurrency was recently trading around US$84,370, little changed over 24 hours, after falling below US$84,000 during Thursday’s session. Bitcoin remains about 7.8% higher over the past month following its strong September recovery.

The pullback followed Bitcoin’s surge above US$87,000 earlier this week, its highest level since January, as investors took profits and rapidly rising government bond yields reduced appetite for riskier assets.

Bond rout weighs on crypto

The biggest macroeconomic pressure on cryptocurrency markets remains the global bond sell-off.

The benchmark US 10-year Treasury yield climbed to 5.196% on Thursday, its highest level since 2007, while the 30-year yield reached around 5.48%, the highest since 2004.

The rise in yields has been fuelled by stronger-than-expected US economic activity, persistent inflation concerns and expectations that the Federal Reserve may need to raise interest rates again.

Oil has added to those concerns, with Brent crude finishing Thursday around US$107 a barrel after gaining more than 4%.