Bitcoin Dips Below $64K as Bond Yields Surge, Binance Bids Return
Bitcoin briefly fell under $64,000 as rising US bond yields increased Fed rate hike expectations.
Bitcoin slipped below the $64,000 mark on Monday, pressured by a sharp rise in US Treasury yields that reinforced expectations of a Federal Reserve rate hike.
The digital asset briefly touched $63,800 before rebounding, according to data from CoinDesk. The move lower coincided with the 10-year US Treasury yield climbing to its highest level since November, driven by stronger-than-expected economic data and hawkish Fed commentary.
Traders noted the return of a so-called 'plunge protection team' on Binance, with large bid orders appearing just below market price to absorb selling pressure. Such liquidity provision has historically helped stabilize Bitcoin during sudden drawdowns.
The CME FedWatch Tool now prices a 68% probability of a rate hike at the next meeting, up from 55% a week ago. Higher rates typically reduce demand for risk assets like cryptocurrencies.
At press time, Bitcoin was trading near $64,200, down 3% on the day. Analysts suggest the $63,000 level remains key support, with resistance at $66,000.