Bitcoin retreats from its recent high as rising borrowing costs weigh on broader risk assets.
Bitcoin retreats as investors reassess the broader risk environment
Photo Credit: Unsplash/Jonathan Borba
Bitcoin traded near Rs. 80.5 lakh on Thursday as the cryptocurrency market came under renewed pressure from rising US Treasury yields and expectations of further interest-rate increases. Ethereum (ETH) was trading near Rs. 2.57 lakh, while major altcoins showed mixed momentum. Market participants said the latest decline followed a sharp sell-off in US bonds that pushed borrowing costs higher and pressured broader risk assets. According to CoinGecko data, Bitcoin traded near $84,400 (roughly Rs. 80.9 lakh), and Ethereum traded near $2,700 (roughly Rs. 2.58 lakh).
The world's largest cryptocurrency fell 2.7 percent in the last 24 hours, as per the Gadgets 360 price tracker. Analysts said Bitcoin's retreat from its recent eight-month high of $87,400 (roughly Rs. 83.8 lakh) reflects a cooling-off move after its sharp weekly rally, while rising Treasury yields and higher expectations of an October rate hike are adding pressure.
Binance Coin (BNB) was priced around $775 (roughly Rs. 74,300), while Solana (SOL) traded near $115.5 (roughly Rs. 11,000). XRP hovered around $1.5 (roughly Rs. 143), while Dogecoin (DOGE) was trading close to $0.094 (roughly Rs. 8.6).
Assessing Bitcoin's latest retreat, Vikram Subburaj, CEO of Giottus.com, said, “The decline of about 2.5 per cent over 24 hours is largely a cooling-off move after a sharp weekly rally, rather than a clear reversal [...] US spot Bitcoin ETFs provided much of the momentum. They received about $2.31 billion (roughly Rs. 22,148 crore) over four trading sessions through September 22 [...] Investors should avoid reacting to a single day's movement after such a rapid rally.”
Pointing to continued institutional demand despite the renewed pressure, Prateek Gupta, Head of Business, Mudrex, said, “Bitcoin is facing renewed pressure near $84,000 (roughly Rs. 80.54 lakh) as stronger US business activity pushed the 10-year Treasury yield to its highest level since 2007, while October rate-hike expectations climbed to around 70 per cent. However, underlying demand remains firm, with US spot Bitcoin ETFs recording $1.7 billion (roughly Rs. 16,300 crore) in inflows over two days [...] More importantly, the $16 billion (roughly Rs. 1,53,408 crore) options expiry on Friday could bring sharper price swings.”
Overall, analysts said the upcoming PCE inflation and employment data, along with Friday's $16 billion (roughly Rs. 1,53,408 crore) options expiry, could add volatility. Bitcoin's $82,500-$85,000 (roughly Rs. 79.1 lakh-Rs. 81.5 lakh) area remains important for the next move, while $86,500 (roughly Rs. 82.9 lakh) is the key resistance level.
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