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Cryptocurrencies Face Ongoing Pressure as Rising Yields Weigh on Risky Assets

  • Bitcoin and cryptocurrencies ticked higher Tuesday but remain under pressure from rising bond yields

  • Like the stock market, digital assets are impacted by the outlook for interest rates and Fed policy

  • Investors continue to assess the expectations for future rate hikes by the Federal Reserve

  • Surging bond yields have kept pressure on risky assets like cryptocurrencies

  • The path of monetary tightening by central banks globally threatens crypto prices

barrons.com
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Surging U.S. Treasury yields are causing concern among investors as they wonder how much it will impact the rally in stocks and speculative assets, with the S&P 500, technology sector, bitcoin, and high-growth names all experiencing losses; rising rates are making it more difficult for borrowers and increasing the appeal of risk-free Treasury yields.
The recent spike in U.S. bond yields is not driven by inflation expectations but by economic resilience and high bond supply, according to bond fund managers, with factors such as the Bank of Japan allowing yields to rise and an increase in the supply of U.S. government bonds playing a larger role.
The dollar is expected to continue strengthening as bond yields rise, with the Fed likely to hike rates at least once more this year, and a barrage of economic data this week will heavily influence Fed policy decisions and impact the direction of the dollar and interest rates.
The Federal Reserve's plan to raise interest rates could lead to increased sell pressure on Bitcoin, potentially pushing its price down to the $25,000 range, although the impact may be limited due to consolidation and caution among traders.
Despite the appearance of a "Goldilocks" economy, with falling inflation and strong economic growth, rising yields on American government bonds are posing a threat to financial stability, particularly in the commercial property market, where owners may face financial distress due to a combination of rising interest rates and remote work practices. This situation could also impact other sectors and lenders exposed to commercial real estate.
A surge in bond issuance by U.S. investment-grade-rated companies is putting pressure on long-end U.S. Treasuries as investors opt for higher-yielding corporate debt over government bonds.
US-based institutional investors are showing increasing bullish pressure on Bitcoin, as indicated by rising buy pressure and spot trading volumes, potentially leading to a price rally towards $28,000 if the trend continues.
The recent increase in interest rates has impacted the price of bitcoin, with factors like opportunity cost, risk sentiment, and inflation expectations playing a role.
Bitcoin and other cryptocurrencies experienced fluctuations following the release of U.S. inflation data, signaling a potential impact of higher interest rates on digital currencies.
Bitcoin and other cryptocurrencies experienced a rise in value as traders made bullish bets in anticipation of the Federal Reserve's interest rate decision, though this surge may be premature.
The Federal Reserve's continued message of higher interest rates is expected to impact Treasury yields and the U.S. dollar, with the 10-year Treasury yield predicted to experience a slight increase and the U.S. dollar expected to edge higher.
Government bond yields are spiking in the US, Europe, and the UK due to investors realizing that central bank interest rates may remain high for an extended period, and concerns over inflation and supply shortages caused by the retirement of baby boomers.
Investors are pushing yields in the Treasury market towards or above 5%, driven by the speed at which they are rising rather than the actual level, which could have negative implications for banks and existing holders of Treasurys.
Investors are expected to shift from traditional bond investments to Bitcoin as a hedge against US dollar debasement, according to Bloomberg Intelligence crypto market analyst Jamie Coutts.
The recent surge in bond yields, with 10-year Treasury yields hitting levels not seen in over 15 years, is impacting the stock market as investors shift their focus to safer bond investments, which offer higher yields and less volatility than stocks.
The recent selloff in bond markets has led to higher yields and the breaking of key levels, indicating a potentially new normal of higher interest rates with implications for mortgages, loans, credit cards, and the global economy as a whole.
Bitcoin and cryptocurrencies are facing pressure due to the U.S. debt pile, leading to fears of a "debt death spiral" that could boost the bitcoin price.
U.S. stocks and bonds are falling due to another surge in Treasury yields, leading to anxiety among investors who fear that the Fed will hold interest rates higher for longer if the labor market remains strong.
The U.S. bond market is signaling the end of the era of low interest rates and inflation, with investors now believing that the U.S. economy is in a "high-pressure equilibrium" characterized by higher inflation, low unemployment, and positive growth. This shift has significant implications for policy, business, and individuals, as it could lead to failed business models and unaffordable housing and cars, and may require the Federal Reserve to raise rates further to control inflation.
The selloff in Treasuries has intensified as yields reach multiyear highs on speculation that the Federal Reserve will continue raising interest rates, causing losses for investors and impacting stock valuations.
The Federal Reserve's shift towards higher interest rates is causing significant turmoil in financial markets, with major averages falling and Treasury yields reaching their highest levels in 16 years, resulting in increased costs of capital for companies and potential challenges for banks and consumers.
The article discusses the recent rise in Treasury yields and explores the positive aspects of higher bond yields.
Major cryptocurrencies experienced a decline due to a surge in the U.S. 10-year yield, while interest rates continued to rise driven by strong manufacturing data and the possibility of more rate hikes in the future.
Yields on U.S. Treasury bonds are rising uncontrollably, causing ripple effects in financial markets, as the 10-year Treasury yield reaches its highest level since August 2007, resulting in plummeting bond prices and impacting various assets such as stocks and gold. The rise in Treasury yields is attributed to factors such as the U.S. government's expanding budget deficit, the Federal Reserve's quantitative tightening program, and its restrictive stance on interest rates.
The recent surge in bond yields is causing a significant shift in markets, but there is still optimism among investors.
Bitcoin's price is increasing despite a mixed market for cryptocurrencies and spiking bond yields.
Violent moves in the bond market have sparked fears of a recession and raised concerns about housing, banks, and the fiscal sustainability of the U.S. government, with the 10-year Treasury yield reaching 4.8% and climbing steadily in recent weeks, its highest level since the 2008 financial crisis.
Longer-term Treasurys and other fixed income investments are recommended to navigate the impact of rising bond yields, offering attractive opportunities and higher yields to those looking to park their cash.
A spike in interest rates has negatively impacted stocks and bonds, but Bitcoin may continue to rise regardless of the rate changes.
Long-term bond yields have surged as the Federal Reserve reduces its bond portfolio and the U.S. Treasury sells debt, contrary to the expectations of Wall Street and investors worldwide, but a research paper written by a University of Michigan student six years ago accurately predicted this scenario.
Rising bond yields may remove the need for the Federal Reserve to raise interest rates in November, as some investors believe, but a stronger-than-expected inflation report could change that perspective.
Financial markets are under pressure after wholesale inflation data came in higher than expected, raising the likelihood of additional interest rate hikes by the Federal Reserve, while Bitcoin faces selling pressure and shows signs of a potential downward trend according to analysts.
The surge in US treasury yields has caused concern among investors due to the lack of an easy explanation, with expectations of hawkish monetary policy, increased bond issuance, and declining demand being potential factors contributing to the rise.
Treasury bond auctions have experienced weak investor demand, possibly signaling a trend of higher yields, although some experts believe yields are already at the right levels to stimulate demand.
Bond yields have surged as investors realize they are a poor hedge against inflation, while stocks are a much better option, according to Wharton professor Jeremy Siegel.
The surge in bond yields is causing losses for investment funds and banks, pushing up borrowing costs globally and impacting stock markets, while the dollar remains stagnant and currency traders predict a recession on the horizon.
The relentless selling of U.S. government bonds has driven Treasury yields to their highest level in over a decade, impacting stocks, real estate, and other markets.
Americans are already feeling the impact of higher bond yields, with mortgage rates topping 8%, personal loan rates at their highest level since 2007, credit card interest rates soaring, and delinquencies on credit cards and personal loans on the rise.
The appeal of bonds over stocks is increasing due to soaring U.S. Treasury yields, potentially impacting equity performance in the long term.