Weekly Wrap: Rising Treasury Yields Sink Bitcoin

Bitcoin Faces Decline Amid Rising Treasury Yields

Market Analysis

Bitcoin (CRYPTO: $BTC) is experiencing a decline in value due to rising Treasury yields. The yield on the 10-year U.S. Treasury has increased by 5.25% since September 1, reaching its highest level since April 2002. This rise in yields is causing investors to rotate capital out of riskier assets such as crypto.

Outflows From Bitcoin ETFs

The continued rise of U.S. Treasury yields is leading to an exodus of investor capital from Bitcoin exchange-traded funds (ETFs). On October 7, about a dozen U.S. spot ETFs saw net outflows of $487.1 million U.S., the most since June 25 of this year.

Ethereum and Bitmine

The price of Ethereum fell 5% on news that crypto treasury firm Bitmine Immersion Technologies (NYSE: $BMNR) plans to stop buying the second-largest digital asset. Bitmine Chairman Tom Lee said that the company will stop accumulating ETH once its holdings reach 5% of the token's circulating supply.

Treasury Holdings

Online brokerage Robinhood Markets (NASDAQ: $HOOD) has added $25 million U.S. of Bitcoin to its balance sheet. The company, which offers stock and crypto trading through a popular app, said it added Bitcoin to its corporate balance sheet to demonstrate that it cares about the cryptocurrency ecosystem.

Stablecoin Expansion

Financial technology company Stripe says it plans to expand its stablecoin payment cards to more than 100 countries by year's end. Stripe said the expansion is part of its bet that digital dollars can become another way for consumers and businesses to make payments alongside traditional currencies.