Bitcoin Barely Holds $26K as Interest Rate Surge Continues
Higher yields are taking a toll on traditional assets as well, with the Nasdaq sinking another 1% to its lowest level since early June.
The price of remained under pressure at $26,200 on Tuesday as the idea of higher rates for a longer period takes hold throughout financial markets. The broad CoinDesk Market Index (CMI) is down 0.6%, modestly underperforming the decline in bitcoin.
The U.S. 10-year Treasury yield moved up to 4.55%, matching its highest level in about 16 years. The yield on the 10-year note began September at just 4.18%.
The sharp move higher in rates is having major effect on equity markets, with the Nasdaq lower by 1.1% on Tuesday and now at its weakest read in nearly four months. The S&P 500 is down similarly and also matching levels not seen since early June.
JPMorgan’s Jamie Dimon warns on rates
"I am not sure if the world is prepared for 7%," said the JPMorgan CEO earlier Tuesday. Dimon noted that the rise in the U.S. Federal Reserve’s benchmark fed funds rate from 0%-2% was not a big deal and that the rise from 2% to the current 5.25%-5.50% caught a few off guard. A rise to 7%, though, he cautioned, is something very few market participants are expecting.
"There will be stress in the system," he said, possibly sending the U.S. economy into recession.
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Bitcoin Jumps to $99K as Spiking Coinbase Premium Points to Strong U.S. Buying
Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
Lo que debes saber:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
