A sharp spike in the 10-year U.S. Treasury yield and an extended Big Tech sell-off is weighing on cryptocurrency prices as investors flee risk-on assets.
Bitcoin (BTC) continues to struggle below $50,000 on March 5 as a spike in the 10-year Treasury yield to 1.62%, its highest level in over a year, has taken a toll on global financial markets and hit risk-assets especially hard. At the time of writing the S&P 500 and Dow are up 0.46% and 0.64% but the tech sector sell off continues as companies like Apple and Tesla continue to slump further. Economists see rising bond yields as the result of improvements in the economy thanks to the Covid-19 vaccine rollout and the expectation that economic activity will ramp up as the rate of coronavirus infections drop. The rise in yields has led some to speculate that the Federal Reserve may institute yield curve control or take a more hawkish stance, but so far the central bank has refrained from altering its current plans. Data from Cointelegraph Markets and TradingView shows that Bitcoin bulls attempted to stage a rally during early trading hours on Friday, pushing the price up 5.25% from a low of $46,280 to an intraday high of $48,725. The $50,000 level has yet to be reclaimed as a firm support and traders are still looking for a daily close above $52,000 to confirm that bullish momentum has been restored.BTC/USDT 4-hour chart. Source: TradingViewDespite this week’s pullback, optimism among investors remains high following February’s record-breaking month which saw Bitcoin reach …
Story continues on Cointelegraph
Menu