Bitcoin Edges Lower as Rate Hike Fears Sap Risk Appetite
By Joseph WilkinsBitcoin edged lower on Friday as the fallout from a recent spike in Treasury yields continued to weigh on investor sentiment.The flagship cryptocurrency has stayed largely muted since Wednesday as investor jitters around the potential for further interest-rate rises suppressed risk appetite.Bitcoin was 0.6% lower at $83,817, having pulled back from its highest level since late January reached Monday at $87,315.Flows into bitcoin ETFs have slowed as the week progressed but are on course to track week-to-date inflows in excess of $2.6 billion--its best week since October 2025, JPMorgan said.A spike in U.S. Treasury yields this week put cryptocurrencies under the spotlight, however, as the market increasingly anticipates further interest-rate increases by the Federal Reserve."With global bond yields at elevated levels, non-yielding assets like bitcoin remain under increased pressure," said Exness strategist Inki Cho in a note. "Looking ahead, the outlook increasingly hinges on whether bond markets find some relief."Following last week's 25-basis-point interest-rate rise, which brought the fed funds target rate range to 3.75%-4.00%, money markets currently price in a 71% probability of another 25-basis-point rate hike at the October meeting, according to LSEG.Write to Joseph Wilkins at [email protected]