Bitcoin has stabilized around $85,000. While concerns over further interest rate hikes by the Federal Reserve have eased due to a slowdown in the U.S. job market, high U.S. Treasury yields and a strong dollar are limiting further price increases for virtual assets.
As of 8 a.m. on October 6, Bitcoin was trading at $85,907, down 0.61% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Major altcoins also saw declines. Ethereum fell 0.44% to $2,717, while Ripple (XRP) dropped 0.49% to $1.51. Solana traded at $120.9, down 0.56%, and Binance Coin (BNB) decreased by 0.84% to $788.
Bitcoin had approached $87,000 the previous day, showing a sharp upward trend. This was influenced by disappointing U.S. employment figures, which somewhat alleviated concerns about additional rate hikes by the Fed.
In September, U.S. non-farm payrolls increased by only 29,000, significantly below the market expectation of 90,000. The unemployment rate also slightly rose to 4.2%. The slowdown in the job market has led to expectations that the likelihood of further tightening may decrease, improving investor sentiment towards risk assets like Bitcoin.
However, persistent inflationary pressures in the U.S. have raised concerns that the Fed may maintain high interest rates for longer than expected, causing Bitcoin to relinquish some of its gains.
On October 5, the yield on the U.S. 10-year Treasury note reached 5.347%, the highest level since April 2002. The yield on the 30-year note also surged to 5.702%. The rise in the price index of the ISM's September Services Purchasing Managers' Index (PMI) to its highest level since 2022 has heightened inflation concerns. High Treasury yields diminish the appeal of risk assets like Bitcoin, which do not pay interest or dividends.
Additionally, the strengthening dollar is putting pressure on Bitcoin prices. The dollar index, which measures the value of the dollar against major currencies, surpassed 102, continuing its upward trend due to rising Treasury yields. An increase in the dollar's value typically exerts downward pressure on risk assets, including Bitcoin, which is traded in dollars.
Meanwhile, at 8 a.m. on the same day, Bitcoin was trading at 116,270,000 won (approximately $86,607) on Bithumb, reflecting a 0.17% increase from the previous day. The so-called 'Kimchi premium,' which indicates the extent to which domestic Bitcoin prices are higher than international prices, was recorded at 0.69%.
* This article has been translated by AI.
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