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The price of <a href="https://xpertsstudio.com/where-will-bitcoin-and-ethereum-be-in-2-years/” title=”Where Will Bitcoin and Ethereum Be in 2 Years?”>bitcoin BTC$76,847.77 has dropped over the past 24 hours, and what happens next may hinge on whether today’s U.S. inflation report can halt the selloff in government bonds.
The largest cryptocurrency is trading near $77,000, with the 10-year Treasury yield around 4.94% and the Dollar Index near 99.15. August’s consumer price index, due at 8:30 a.m. ET, could determine how much pressure those markets exert on crypto heading into next week’s Federal Reserve interest-rate decision.
The concern is that borrowing costs reflect inflation risks rather than stronger growth.
“This is the worst mix for Bitcoin: a competing 5% risk-free rate without the nominal-growth impulse that usually accompanies yield moves,” trading firm QCP said in its latest note. Brent crude’s climb as high as $109 a barrel adds to the difficulty of bringing inflation down.
Economists estimate that core consumer prices, which exclude food and energy, rose 0.2% from July. QCP pointed out the probability of a Fed rate increase next week at roughly two-thirds, nearly in line with prediction markets’ 61% odds.
A softer inflation print could reduce those rate-rise expectations and give bitcoin room to recover, while an upside surprise would risk another rise in yields ahead of the Fed meeting.
The approaching weekend could amplify any post-CPI moves as liquidity thins. Once U.S. markets close, spot bitcoin ETF trading will pause until Monday, as will most institutional activity, leaving crypto markets to absorb fresh geopolitical headlines or any other black swan event. Stay alert!
What’s trending
- New Clarity Act text tweaks DeFi, credit union provisions, but road ahead for bill remains murky (CoinDesk): A new version of the Clarity Act offers tweaks to how crypto legislation would address DeFi and traditional finance firms engaging in crypto activities, but it isn’t expected to represent a final compromise that will win sufficient support from Democrats.
- Ripple puts AI agents inside its $1 billion corporate treasury bet (CoinDesk): Ripple is putting AI agents into the corporate treasury business it spent $1 billion to enter last year, expanding software that can monitor a company’s cash, risk and forecasts and propose what its finance team should do next.
- India starts tokenizing $620 billion corporate bond market with digital rupee settlement (CoinDesk): India has started settling corporate bonds using blockchain technology and central-bank digital money, taking tokenization deeper into the country’s traditional financial markets.
- Global bond selloff keeps 10-year U.S. yield near 5% on oil, rate-hike fears (Reuters): The global bond selloff pushed U.S. 10-year Treasury yields to nearly 5% as inflationary fears stemming from oil prices above $100 and rising chances of a near-term U.S. rate hike rattled investors.
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Source: cryptonews.net