Bitcoin's price is facing significant challenges to its recovery due to a combination of rising global bond yields and the strengthening price of gold. These factors are creating an unfavorable environment for risk assets like cryptocurrencies.
Key headwinds impacting Bitcoin include:
- Rising Treasury Yields: Both the U.S. 10-year and 30-year Treasury yields have risen, with the 30-year yield hitting 5%. This trend, coupled with Japan's 30-year Government Bond yield reaching an all-time high, is easing demand for risky assets. According to analyst Peter Schiff, if the yen carry trade is unwound in response to the Bank of Japan's potential interest rate hikes, it could cause Bitcoin's price to drop below $100,000.
- Gold's All-Time High: Gold has reached a new all-time high of over $3,600, driven by concerns over tariffs, rising yields, and a debt crisis. This rally has led to a growing divergence in the correlation between gold and Bitcoin, with investors increasingly favoring gold as a safe-haven asset during market uncertainty.
Despite these challenges, the article notes that investors are closely watching for potential market recovery. A Fed rate cut of 25 basis points on September 17 has a high probability of occurring, which could provide a bullish catalyst for the crypto market. At the time of writing, Bitcoin was trading just above $111,000. The upcoming release of U.S. job data will also provide further signals for market direction.
September 2025, Cryptoniteuae