A dayslong sell-off in the Bitcoin market intensified, and Treasury yields jumped Thursday, as Federal Reserve Chairman Jerome Powell did little in subsiding fears about the recent spike in government debt selling.
As it relates to the bond market, I’d be concerned by disorderly conditions in markets or by a persistent tightening in financial conditions broadly that threatens the achievement of our goals,” Mr. Powell said.
WALL STREET, BITCOIN ALL DOWN
Elsewhere in the cryptocurrency market, almost all the top tokens recorded major intraday losses on a 24-hour adjusted timeframe. Chainlink, Polkadot, and Binance Coin fell within the 9-11 percent range, while Ethereum—the second-largest cryptocurrency—dropped by approximately 6 percent.
Money instead flew into assets that performed poorly during the coronavirus pandemic last year. That included the S&P 500’s energy sector, which gained 2.5 percent. The US dollar also rose higher. Bitcoin tends to react negatively when the greenback gains strength.
Eric Winograd, a senior economist at AllianceBernstein, said that he expects the Fed to intervene if the yields on longer-dated Treasuries surge above certain thresholds. He anticipated the interest rate returns on bonds to grow higher in coming quarters but slowly.
“Institutions are still accumulating BTC in the $46,000-$48,000 range,” he added.
“Remember, institutions like Tesla are with us,” the on-chain analyst added.
Some analysts noted that Bitcoin risks falling towards $45,000 in the coming session but would retain its upside bias against long-term inflation fears