Bitcoin traded near $74,000 as markets reacted to rising US bond yields and high CPI inflation data. The asset maintained a narrow range between its 21-week simple moving average of $73,078 and its 50-week average of $75,492.
Short-term holders faced increased pressure as Bitcoin dropped below the $75,700 support level. On Tuesday, these entities transferred over 47,000 BTC to exchanges while holding unrealized losses, which may indicate potential panic selling.
Stock markets rallied despite the 10-year US bond yield reaching 5% and the 30-year yield hitting 5.378%. Investors resumed buying tech stocks, with CoreWeave shares rising over 20% following its Q3 earnings report.
Nvidia shares opened 2.5% higher. Meanwhile, oil prices increased amid geopolitical tensions in the Strait of Hormuz. US WTI crude rose 1.4% to $87.70 per barrel, and Brent crude gained 1.5% to reach $93.40.
Market analysts suggest that bond pricing reflects expectations of a hawkish Federal Reserve policy. Current market data indicates a 0.25% interest rate hike is expected in December, with growing odds of a 0.5% increase.
