LONDON - Bitcoin reached an almost two-month low as risk aversion weighs on the cryptocurrency market with global government bond yields climbing to the highest in about 15 years.
"When you throw in what is happening in the bond market, it becomes easy for Bitcoin prices to soften," Edward Moya, senior market analyst at Oanda, said in a note. "If risk aversion becomes the dominant theme on Wall Street, Bitcoin’s bearish momentum could target the US$27,200 level."
The largest digital asset by market value fell as much as 3.7% to $27,867, extending gains after dropping below $28,000. The decline was the biggest on an intraday basis since July 24. Other cryptocurrencies were also lower, with Ether down about 4% and Cardano and Solana’s tokens erasing earlier gains.
The rise in global yields comes as resilient economic data challenges the view that central banks rates are peaking. Higher interest rates generally lessen the appeal of alternative investments such as cryptocurrencies.
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