Baxia Markets News

Bitcoin faces resistance, price declines

Written by Baxia Markets | Sep 28, 2021 11:00:00 PM

 

After bouncing from $41,000 to $44,000 over the weekend, the crypto market leader is trading near $41,800 at press time, down 2% for the week. The dollar index, which measures the value of the greenback against other major fiat currencies, has surged to a month-and-a-half high above 93.00, while gold is down 0.5 percent at $1,740 per ounce. According to TradingView data, the 10-year Treasury yield is at three-month highs above 1.5 percent, and the two-year yield is hovering at an 18-month high of 0.28 percent.

 

 

The 10-year real yield in the United States has risen 20 basis points this month, although it is still in negative territory at -0.87%, according to Treasury statistics. A rise in real yields might harm gold and put moderate selling pressure on bitcoin among those who use it as an inflation hedge. Furthermore, real yields are likely to remain low, as the rise may result in higher inflation, increasing demand for inflation-hedging instruments.

 

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