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Source: Newsmaker.id
Bitcoin weakened during Thursday's trading (Sept 10), pressured by the escalating conflict between the United States and Iran and high Treasury yields that dampened investor appetite for risk assets. The world's largest cryptocurrency fell approximately 1% to US$78,249.6, while the majority of altcoins also traded in the red.
Market sentiment soured further after oil prices surged, with Brent crude holding above US$100 per barrel. Tensions mounted after Iran claimed to have attacked several vessels near the Strait of Hormuz, while the United States retaliated by destroying several Iranian oil tankers.
The spike in energy prices has reignited inflation concerns. If price pressures remain elevated, the Federal Reserve could potentially maintain a tight monetary policy or raise interest rates again. Such conditions act as a negative factor for Bitcoin and other cryptocurrencies, which are highly sensitive to liquidity and funding costs.
Pressure also stemmed from the bond market. The yield on the 10-year US Treasury note surged to a nearly three-year high after the US Treasury Department's plan to buy back long-term bonds failed to soothe the market. High yields increase the appeal of interest-bearing assets and make investors more cautious regarding speculative assets like crypto.
Altcoins also weakened. Ether fell about 0.7% to US$2,474.32, while XRP slumped 2.6%. Solana and Cardano dropped more than 2%, BNB weakened 4.3%, Dogecoin lost 5.3%, and the $TRUMP token fell around 10%.
Newsmaker Analysis: Bitcoin continues to face pressure as long as Treasury yields remain high and the Middle East conflict keeps oil prices above US$100. A combination of high inflation, expectations of tight interest rate policies, and reduced risk appetite limits the scope for a crypto rebound. Markets will now be highly sensitive to US inflation data, as hotter-than-expected figures could further increase pressure on Bitcoin. (arl)
Source: Newsmaker.id