Bitcoin gains some advantages as U.S. 10-year yield hits 16-year high

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Bitcoin gains some advantages as U.S. 10-year yield hits 16-year high

Bitcoin ended the first trading day of the week in the green, but it gained some advantages as the U.S. 10-year yield surged to its highest level in more than 16 years. The world's biggest digital asset has dipped into the red in the past 24 hours, down by 1.57%. On their first day of trading, the ether futures ETF didn't gain interest among investors, with low volumes reported on their first day of trading.

Bitcoin is about to end the U.S. trading day at just below $28,000, up about 3%, according to CoinDesk Indices data. ether is decreasing at about $1670 a share, down modestly for the session. In the past 24 hours, the value of the coinDesk market index has surged by 1.6%.

Stocks were mixed Monday after U.S. lawmakers over weekend prevented a government shutdown with a stop-gap bill. The U.S. 10-year Treasury yield soaring another 11 basis points to 4.69%, the latest increase in interest rates. The yield rose after unexpectedly strong manufacturing data underscored the resilience of the U.S. economy, with the ISM data coming in at 49 compared to a forecasted 47.7, suggesting that more rate hikes could be in the future.

The crypto market, especially bitcoin, has experienced a sizable rally recently, influenced by factors such as the SEC's ether futures ETFs approvals and other government decisions, QCP Capital said in a recent note. However, QCP is worried about the sustainability of the rally, with shifts in demand and historical data suggesting potential market downturns.

If price changes aren't massively driven by consumer spending, that's okay. They're not supposed to be all over the room, said Michael Safai, Dexterity Capital Managing Partner, on a recent appearance on CoinDesk TV.

He continued, '' I know the markets like traders do. 'The optimism is a bit misplaced, with anyone who wants bitcoin or ether surely has it,' he said.