TheBlock
Bitcoin held near $77,000 on Wednesday as a selloff swept through global bond markets, with Japan's 10-year government bond yield sitting above 3% for a second straight session after touching the level for the first time since 1996. U.S. and European yields also climbed, while Brent crude pushed above $95 on renewed U.S.-Iran tensions, putting the cryptocurrency's late-summer rally through its first macro stress test. Bitcoin's pullback from its local high has been contained, trading in a $76,800-$81,600 range after a 23% surge the prior week.
Why it matters
The relative calm matters more than the level itself. LMAX Group strategist Joel Kruger told The Block that bitcoin's performance against equities and other risk-sensitive assets was encouraging, noting that dips continue to attract demand and reinforcing the view that the market is consolidating after its recent surge. Open interest in futures and perpetuals sits at $38.6 billion, near a four-month low, with funding rates neutral, a setup Wincent Senior Director Paul Howard called healthier than the leverage that built into the late-summer move.
Market impact
The demand underneath the consolidation is institutional. K33 data shows global bitcoin ETPs absorbed 52,152 BTC in August, the strongest monthly haul since November 2024, while Strategy resumed buying for the first time since June, adding 4,603 BTC worth $369.7 million last week. K33 Head of Research Vetle Lunde called it a clear reversal after months of heavy selling, including record ETF outflows in May and June that he attributed to retail rather than institutional flows. Friday's U.S. payrolls report now looms, with markets pricing roughly a 70% chance of a September Fed rate hike following Kevin Warsh's Jackson Hole remarks.
Frequently asked questions
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Why is Bitcoin holding steady while bonds and equities sell off?
LMAX's Joel Kruger attributes the resilience to spot-led demand absorbing supply during a leverage flush, with open interest near four-month lows removing the speculative froth that typically amplifies drawdowns.
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How much Bitcoin did ETPs absorb in August?
Global bitcoin exchange-traded products took in 52,152 BTC in August, according to K33, the strongest monthly haul since November 2024 and a reversal from record outflows in May and June.
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Did MicroStrategy buy Bitcoin again?
Strategy added 4,603 BTC for $369.7 million last week, its first purchase since June, per K33's Vetle Lunde, marking a return after a multi-month pause.
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What's driving the global bond selloff?
Japan's 10-year government bond yield crossed 3% for the first time since 1996, while U.S. and European yields climbed as traders repriced inflation and rate paths, with Brent crude above $95 adding an energy-shock premium.
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Why does the U.S. payrolls report matter for crypto now?
Markets are pricing roughly a 70% chance of a September Fed rate hike following Kevin Warsh's Jackson Hole remarks, and Friday's payrolls print is the next major input into that expectation.
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