Bitcoin and other cryptocurrencies have remained steady despite a selloff in the stock market. Rising bond yields have put pressure on risk-sensitive assets, but traders are still optimistic about potential gains in the coming weeks.
Over the past 24 hours, the price of Bitcoin has fallen less than 1%, reaching $27,550. It has been trading between $27,300 and $27,700 during this period. Bitcoin is still above the $26,000 mark, which had been the range for trading over the past month. While the cryptocurrency has slipped from its recent peak of over $28,000 earlier this week, it remains relatively stable.
According to Alex Thorn, head of research at crypto financial services group Galaxy, Bitcoin has held up well due to limited selling and strong conviction from long-term holders. Thorn believes that a clean break above $28,000 could pave the way for Bitcoin to test the $30,000 range.
While the Dow Jones Industrial Average and the S&P 500 have experienced a selloff this week, Bitcoin has remained stable. Despite a surge in bond yields, which reached 4.8% on the 10-year U.S. Treasury note, cryptos have held their ground. Typically, higher yields add pressure to risk-sensitive assets as investors seek better returns on risk-free government debt. However, traders in the crypto market continue to be bullish after a historically good September, which may lead to further gains in the future.
According to Thorn, October has historically been Bitcoin’s best-performing month, with an average gain of 19.48% over the past nine years (with the exception of 2018). Market participants have actively positioned themselves for significant Bitcoin upside in October, indicating their willingness to pay steep options premiums to capture potential gains.
In addition to Bitcoin, the price of Ether, the second-largest cryptocurrency, fell less than 1% to $1,650. Altcoins, smaller tokens like Cardano and Polygon, had mixed performance, with Cardano down 1.5% and Polygon up 3%. Memecoins like Dogecoin and Shiba Inu experienced some weakness, with Dogecoin dropping 2% and Shiba Inu shedding 1%.
Overall, Bitcoin and other cryptocurrencies have held steady during a time of stock market selloff and rising bond yields. Traders remain optimistic about future gains in the crypto market, particularly in the month of October, which has historically been a strong month for Bitcoin.