Bitcoin (BTC) traded below $74,000 early Wednesday as the global bond selloff deepened. BTC fell to about $73,600 shortly after Tuesday’s U.S. inflation release.
The two-year U.S. Treasury yield rose another 2 basis points to about 4.75% in early Asian trading after jumping 8 basis points Tuesday, Reuters reported.
The 10-year yield increased 1 basis point to 4.9958% after a 12-basis-point rise overnight.
Important Read: Bitcoin falls below $74,000 as U.S. CPI tops forecasts
Japan’s 10-year government bond yield climbed 7 basis points, and Australia’s gained 6 basis points. The dollar index rose 0.1% on Wednesday to 102.29.
When yields rise, investors may shift toward government bonds and away from digital assets like Bitcoin.
On Tuesday, the U.S. inflation report was released. Consumer prices rose 0.4% from September to October, while core prices, which exclude food and energy, rose 0.3%.
Both readings exceeded expectations.
Before the release, Federal Reserve Governor Christopher Waller said a core reading near 0.3% could warrant considering a half-point hike.
Futures traders saw at least a quarter-point increase in December as nearly certain and put the chance of a half-point move at about 10%, Reuters reported.
Goldman Sachs added a quarter-point hike in March 2027 to its forecast, bringing its projected peak rate to 4.25%-4.50%.
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