Bitcoin retreated to just above $83,100 on Tuesday morning in Asian trading, testing the lower boundary of last week's consolidation range. The decline came as the 10-year Treasury yield reached its highest level since 2007, raising the opportunity cost of holding non-yielding assets like Bitcoin.
Rising oil prices compounded selling pressure, with Brent crude gaining more than 1% to nearly $107 a barrel for a second consecutive day as diplomatic hopes with Iran diminished. The combination of higher Treasury yields and elevated oil prices fueled inflation concerns and expectations of additional Federal Reserve rate hikes.
Among major cryptocurrencies, Zcash fell 12% to approximately $1,380, marking the steepest decline. Solana and HYPE each dropped between 3% and 4%, while Dogecoin fell 3%, Binance Coin declined 2%, and XRP shed nearly 2%. Ether and Tron held flat. The Graph's GRT token jumped 18%, and Immutable's IMX rose nearly 10%, while Uniswap and Bitcoin Cash each fell about 10%.
The total cryptocurrency market value held near $2.86 trillion, with a widely watched crypto sentiment index standing at 74 out of 100, just short of the "extreme greed" zone.
Alex Kuptsikevich, chief market analyst at FxPro, noted that Bitcoin's pullback to $83,000 represented a test of the lower consolidation boundary. He indicated that a sustained drop below $80,000 would signal prolonged weakness, while renewed bullish momentum could push the asset above $90,000.
Global equities declined alongside crypto, with MSCI's All Country World Index falling to its lowest level since September 18. Market participants are awaiting Wednesday's release of August's personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, which could influence expectations for further rate increases.
