Bitcoin Near $59K as Worries on Bond Yields Increase

Bitcoin Near $59K as Worries on Bond Yields Increase

Bitcoin’s price struggled to push higher after briefly touching $59,000 when markets opened in the U.S. on Friday.

Investors continued to monitor the potential fallout from U.S. Treasury bond yields, which some analysts warn could lead to a correction in risky assets from bitcoin to stocks.

The 10-year Treasury note yield went as high as 1.74% on Friday, the highest since January 2020, after the Federal Reserve signaled Wednesday it would keep loose monetary policy for the foreseeable future.

“If we continue to see the U.S. bond market questioning the Fed forward guidance, it could lead to more downside pressure in risk assets and start to weigh on bitcoin by extension,” Joel Kruger, cryptocurrency strategist at LMAX Digital, told CoinDesk. “We think this is a risk worth considering, especially with bitcoin already having moved so far and fast in 2021 thus far.”

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