Bitcoin At A Breaking Point: Will Bulls Trigger A Rally Or Send BTC Back To $70K?

Bitcoin opened September in negative territory, breaking below the $78,000 zone after having appreciated nearly 25% during August. This initial price action coincides with a calendar marked by high-impact macro events: the probability of a new Federal Reserve rate hike stands at 66%, the 10-year Treasury yield has reached its cycle high of 4.78%, and the conflict in the Middle East has pushed Brent crude above $90 per barrel.

The macroeconomic context constitutes the primary headwind for risk assets. Federal Reserve Chairman Kevin Warsh’s remarks at the Jackson Hole symposium left no room for dovish interpretation. Warsh characterized current financial conditions as “not accommodative” and reiterated that underlying inflation remains well above the 2% target. This stance has reshaped market expectations, pushing the federal funds rate to a projected range of 4.00-4.25% by year-end.

For Bitcoin, an asset that competes directly with bond yields, this dynamic implies an increase in opportunity cost and greater dollar strength, factors that have historically exerted downward pressure on its price.

… Continue reading the full article at the original source below.