<![CDATA[<figure class="image"><img src="https://cimg.co/news/123145/325783/3488040353-ccc6e20497-c.jpg" alt="bitcoin loss" srcset="https://cimg.co/news/123145/325783/responsive-images/3488040353-ccc6e20497-c___media_library_original_1200_798.jpg 1200w, https://cimg.co/news/123145/325783/responsive-images/3488040353-ccc6e20497-c___media_library_original_900_599.jpg 900w, https://cimg.co/news/123145/325783/responsive-images/3488040353-ccc6e20497-c___media_library_original_720_479.jpg 720w, https://cimg.co/news/123145/325783/responsive-images/3488040353-ccc6e20497-c___media_library_original_600_399.jpg 600w, https://cimg.co/news/123145/325783/responsive-images/3488040353-ccc6e20497-c___media_library_original_300_200.jpg 300w" sizes="100vw" width="1200" class="content-img"><figcaption>Image by <a href="https://pixabay.com/users/michaelwuensch-4163668/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=2007769"><u>MichaelWuensch</u></a> from <a href="https://pixabay.com//?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=2007769"><u>Pixabay</u></a></figcaption></figure><p>Bitcoin losses continued today as bond yields continued to rise, causing concern for investors. This downturn has seen the leading digital currency dip below its two-month low of $26,000 for a loss of 0.74% over the past 24 hours.</p><h3 id="bitcoin-struggles-amid-market-changes">Bitcoin Struggles Amid Market Changes</h3><p>The drop in Bitcoin's price comes after a challenging week for the <a href="https://cryptonews.com/guides/cryptocurrency/">cryptocurrency</a>. Over the past seven days, <a href="https://www.forbes.com/advisor/investing/cryptocurrency/why-is-bitcoins-price-falling/">Bitcoin's price dropped more than 11%</a>. Alongside this, other digital currencies, such as Ether and XRP, have also experienced sizable price decreases.</p><figure class="media"><oembed url="https://twitter.com/Alyssa_JonesX/status/1694022582700580911"></oembed></figure><p><a href="https://www.ft.com/content/1ed06fa6-8e4a-4dc8-876b-9e0c4b12cc48">The increase in US Treasury yields</a>, which are currently at multi-year highs, is a significant factor in the changing market dynamics.&nbsp;</p><p><a href="https://www.un.org/en/desa/rise-bond-issuance-could-pose-risk-global-economy">A global trend of selling bonds has emerged</a> due to concerns about stricter monetary policies looking to control inflation. When these policies are in place, there's less money available for investment. This situation can be problematic for investments considered to be riskier, like stocks and cryptocurrencies including Bitcoin.</p><h2 id="awaiting-key-comments-from-central-bankers">Awaiting Key Comments from Central Bankers</h2><p>This week, attention is turned to <a href="https://www.wsj.com/video/series/dion-rabouin/the-feds-jackson-hole-meeting-real-estate-and-business-surveys/BBCF8DC2-55F4-4289-BA19-8524150CE11F">Jackson Hole</a>, where top central bankers will gather for the Federal Reserve's annual symposium. All eyes will be on the Federal Reserve Chair, Jerome Powell, whose remarks on Friday are eagerly awaited. Investors are keen to understand the future direction of monetary policies.&nbsp;</p><p>Tony Sycamore, a market analyst at IG Australia Pty, <a href="https://www.bloomberg.com/news/articles/2023-08-21/bitcoin-btc-price-falls-again-as-rising-bond-yields-repel-dip-buyers">shared his perspective with Bloomberg</a>: "The market potentially is hoping there is going to be some dovish rhetoric coming out of Jackson Hole." Sycamore added, however, "I don&rsquo;t think they are going to be dovish."</p><figure class="media"><oembed url="https://twitter.com/search?q=jackson%20hole%20bitcoin&amp;src=typed_query&amp;f=top"></oembed></figure><h2 id="predictions-and-future-outlook">Predictions and Future Outlook</h2><p>With the ongoing changes in the market, <a href="https://cryptonews.com/news/bitcoin-price-prediction-as-fundstrats-tom-lee-says-btc-could-reach-180000-next-year-time-buy-dip.htm">predictions about Bitcoin's future are varied</a>. Sycamore anticipates that the S&amp;P 500 stock index could see a decrease of 2% to 3% if the 10-year US Treasury yield surpasses 4.33%. If this happens, Bitcoin's loss might continue, possibly dropping to around $25,000.</p><figure class="media"><oembed url="https://twitter.com/stackhodler/status/1693920615328047354"></oembed></figure><p>Despite these concerns, many in the crypto industry are hopeful about the potential introduction of US Bitcoin and Ether futures exchange-traded funds. <a href="https://www.linkedin.com/today/author/noelleacheson">Noelle Acheson</a>, a known author in the field, stated, "Despite the macro risk, there is a strong potential crypto catalyst in the wings: the listing of ETFs."</p><p>The recent downturn in Bitcoin is the most significant since the <a href="https://cryptonews.com/news/crypto-prices-crash-as-ftx-crypto-exchange-collapses-what-we-know-so-far.htm">FTX crypto exchange incident</a> last year. However, Bitcoin's gain for the year still stands at 57%, a decrease from 90% in mid-July.</p><h2 id="investor-concerns">Investor Concerns</h2><p>The events of the past year have caused both retail and institutional investors to be wary of the crypto market. <a href="https://research.kaiko.com/insights/lowest-quarterly-volume-since-2020">Kaiko data shows</a> that the average daily trading volumes on main digital-asset exchanges in the past four months have been the lowest since October 2020. This was a time when Bitcoin was trading at approximately $10,000.</p><p>As Bitcoin's downward move continues and bond yields rise, the future of cryptocurrencies looks uncertain. Investors and market watchers will be closely monitoring the comments from central bankers and the potential listing of crypto ETFs to gauge the market's direction.</p>
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Higher Bond Yields Contribute to Bitcoin's Extended Losses

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