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Bitcoin holds steady at $85,300: returns outweigh regulatory hopes.
Сryptocurrency
Bitcoin edged lower on Tuesday, extending losses from the previous session,
as rising global bond yields largely offset optimism regarding a more favorable regulatory environment in the U.S.
The world's largest cryptocurrency fell 0.13% to $85,830.7 by 12:35.
Prices of other cryptocurrencies also declined in tandem with Bitcoin, pulling back from significant gains achieved over the past three months. However, markets remained hopeful that the historical trend of cryptocurrency strength in October—dubbed "Uptober"—would repeat itself this year.
Attention was also focused on the upcoming launch of trading services for tokenized U.S. stocks, following the Securities and Exchange Commission's (SEC) approval of tokenized offerings earlier this year.
Rising yields rattle Bitcoin as bond prices fall
Global bond yields continued to climb this week, with the yield on 10-year U.S. Treasuries hitting a 24-year high on Monday. Elsewhere, the yield on 10-year Japanese bonds remained at 30-year highs, while the yield on 10-year UK bonds hovered at 19-year highs.
Global bond yields surged amid growing concerns over strained fiscal conditions in developed nations, while rising oil prices and expectations of further interest rate hikes also fueled a sell-off in bond markets. Higher yields generally reduce the appeal of purely speculative, high-risk investments such as cryptocurrencies.
However, Bitcoin found some support in expectations that bond market troubles could hurt the dollar, thereby spurring investment in alternative assets like cryptocurrencies and gold.
CFTC Proposes Rules for Crypto Margin Trading
Providing some support to crypto markets, the Commodity Futures Trading Commission (CFTC) on Monday opened a 50-day public comment period to consider a regulatory framework for leveraged digital asset transactions offered to retail investors.
The proposed framework aims to create a distinct registration subcategory for platforms that facilitate leveraged, financed, or margined transactions.
The CFTC seeks to establish compliance safeguards designed to prevent fraudulent schemes and protect retail traders.
The CFTC proposal also comes just weeks after the SEC announced an exemption for tokenized stock offerings, fueling hopes for a more favorable regulatory environment for cryptocurrencies in the U.S.