Key Takeaways
- Bitcoin fluctuated between $78,300 and $79,650 on Wednesday following a U.S. Treasury $6 billion debt buyback.
- Flat price action triggered $59 million in bitcoin liquidations and $223 million across the crypto market.
- Analysts expect larger U.S. Treasury buybacks to fuel a rally, while Kobeissi Letter warns yield may pass 5.00%.
Volatile Trading and Middle East Conflict
Bitcoin experienced another volatile trading period as it swung from just over $78,700 to $79,600, even as reports suggested that the U.S. Treasury bought back $6 billion in long-term debt, tripling levels seen before the recent intervention announcement.Market data show that before midnight, bitcoin’s price ranged between a high of $78,900 and a low of $78,300. However, Bitstamp data show that in the early hours of Wednesday, the price breached $79,000 and held above that threshold. Around 4:35 a.m. EST, the but began retreating immediately as markets reacted to reports of new fighting in the Middle East.
As reported by Bitcoin.com News, the latest escalation in the U.S.-Iran conflict saw crude oil prices spike, with Brent crude topping $100 per barrel for the first time since July 2. Since Aug. 30, Brent crude oil has now , and one U.S. bank projects this to reach $120.
After dipping below $79,000, rallied again and appeared to lose steam after reclaiming $79,500. Another sell-off sent the price tumbling to $78,095 before a relief rally left it trading just above $78,600 around 12:16 p.m., keeping its market cap almost unchanged at $1.57 trillion.
In the derivatives market, bitcoin’s flat price action triggered $59 million in liquidations, almost evenly split between long and short bets. Overall, topped $223 million, with liquidated long bets accounting for just over $120 million.
This sluggish price action contrasts sharply with bitcoin’s explosive breakout on Aug. 19, when the U.S. Treasury’s bond buyback announcement propelled the asset up by more than $15,000 over the following week. While bitcoin has successfully defended those gains rather than surrendering them, analysts expected the latest intervention to spark a second leg higher.
While bitcoin’s price remained flat, yields on U.S. Treasuries reportedly rallied on the latest U.S. Treasury announcement, which, according to a , suggests the bond market is fighting the U.S. Treasury.
“Without an end to the Iran War, we are on track to see the 10Y Note Yield above 5.00% by next week. American consumers, homebuyers, and borrowers are in for a rude awakening,” the post warned.