Bitcoin holds above $84K despite 5.12% treasury yields and hawkish Fed – Report

Bitcoin [BTC] was trading at $84,160.55 at press time after peaking to a height of $86K a few days ago. This rally caught everyone’s attention as it happened despite conditions that would normally be negative for risk assets.

In other words, Bitcoin did not rise because the macroeconomic environment suddenly became easy. The leading cryptocurrency rose while interest rate expectations, treasury yields, and inflation concerns were still creating pressure. 

Concerning the macroeconomic picture

Given the case in point, the U.S. 10-year Treasury yield climbed to around 5.12% on the 23rd of September, while Bitcoin simultaneously moved above $87,000.

According to the CoinShares report, with this percentage, the 10-year yield reached its highest level since 2007. Meanwhile, the Fed’s hawkish stance, persistent inflation concerns, and stronger September PMI data further raised expectations of another rate hike, creating a potential headwind for Bitcoin.

At the same time, Brent crude fell below $100, potentially easing inflation pressure, although oil remains elevated. Adding fuel to the fire, the CLARITY Act too failed to advance in the Senate on the 15th of September after a 49–50 cloture vote.