Bitcoin Slips Below $64,000 As Rising US Bond Yields Fuel Fed Rate-Hike Fears

Bitcoin dropped more than 1.6% on Friday, briefly falling under $64,000 as fresh macroeconomic pressure hit crypto and broader risk markets. The move came after Wall Street opened and bond yields climbed sharply, unsettling traders who had hoped for calmer conditions following recent gains.

US Treasury Yields Push Fed Toward A Hawkish Stance

Analysts at Mosaic Asset Company pointed to surging Treasury yields as the main driver behind the sell-off, noting that the two year yield, often seen as a signal for future Fed moves, had climbed to 4.31%, well above the central bank’s target range. Despite a softer-than-expected inflation report, yields kept climbing across the curve.

Market pricing from CME Group’s FedWatch Tool still shows the Fed likely holding rates steady next week, though a rate hike in September remains a strong possibility.

Traders Spot Familiar Support Pattern On Binance

Analysts flagged a repeat of an earlier pattern, pointing to stacked buy orders below the spot price on Binance that appeared designed to slow further downside.