On Tuesday, Bitcoin fell slightly, continuing the downward trend from the previous session. Rising government bond yields worldwide have virtually offset all positive expectations regarding a possible improvement in the regulatory framework in the U.S.
As of 8:58 a.m. Moscow time, the leading cryptocurrency had lost 0.26%, trading at $85,540.7.
Bitcoin’s decline triggered a correction in other digital assets as well. Many coins began to pull back from the highs they had reached over the past three months. However, investors are still hoping for the October rally that is typical for the crypto market.
Everyone is also awaiting the launch of platforms for trading tokenized stocks from the U.S. This should happen very soon, as the SEC has already given the green light for the issuance of such assets.
Why Rising Bond Yields Are Weighing on Bitcoin
This week, global bond yields have been rising steadily. On Monday, the yield on 10-year U.S. Treasury bonds jumped to a 24-year high. In Japan, 10-year bond yields reached levels not seen in 30 years, while in the UK, they hit their highest point in 19 years.
This situation is driven by concerns over budget deficits in developed countries, rising oil prices, and forecasts that interest rates will continue to rise. All of this is prompting investors to sell off bonds.
Typically, when yields rise, risky and speculative instruments, such as cryptocurrencies, become less attractive.
On the other hand, Bitcoin is still holding steady. Many are betting that the situation with bonds could weaken the dollar, which would drive capital to flow into gold and cryptocurrency.
CFTC Prepares New Rules for Margin Trading
Good news has come from the Commodity Futures Trading Commission (CFTC). On Monday, the agency announced that it is launching a 50-day public comment period. The rules pertain to the regulation of leveraged trading of digital assets by retail investors.
The idea is to introduce a special registration status for platforms engaged in margin trading or lending.
The CFTC aims to establish a clear regulatory framework to protect ordinary market participants and prevent market manipulation.
This decision came shortly after the SEC simplified the requirements for tokenized stocks, raising hopes among many that crypto market regulations in the U.S. would be eased.
What’s Happening with Altcoins
On Tuesday, the crypto market’s total market capitalization began to decline, following Bitcoin’s lead.
Ether, the second-largest cryptocurrency, fell 1.16% to $2,693.16, while XRP dropped 1.6%.
Solana and Cardano lost 1.6% and 1.1%, respectively, while BNB fell by 1.8%.
Things aren’t going smoothly in the world of meme coins either: Dogecoin fell 1.8%, and the TRUMP token dropped 2.9%.