Share this article
Bitcoin Barely Holds $26K as Interest Rate Surge Continues
Higher yields are taking a toll on traditional assets as well, with the Nasdaq sinking another 1% to its lowest level since early June.
Updated Sep 26, 2023, 5:00 p.m. Published Sep 26, 2023, 4:58 p.m.
The price of remained under pressure at $26,200 on Tuesday as the idea of higher rates for a longer period takes hold throughout financial markets. The broad CoinDesk Market Index (CMI) is down 0.6%, modestly underperforming the decline in bitcoin.
The U.S. 10-year Treasury yield moved up to 4.55%, matching its highest level in about 16 years. The yield on the 10-year note began September at just 4.18%.
STORY CONTINUES BELOW
Не пропустіть жодної історії.Підпишіться на розсилку Crypto Daybook Americas вже сьогодні. Переглянути всі розсилки
The sharp move higher in rates is having major effect on equity markets, with the Nasdaq lower by 1.1% on Tuesday and now at its weakest read in nearly four months. The S&P 500 is down similarly and also matching levels not seen since early June.
JPMorgan’s Jamie Dimon warns on rates
"I am not sure if the world is prepared for 7%," said the JPMorgan CEO earlier Tuesday. Dimon noted that the rise in the U.S. Federal Reserve’s benchmark fed funds rate from 0%-2% was not a big deal and that the rise from 2% to the current 5.25%-5.50% caught a few off guard. A rise to 7%, though, he cautioned, is something very few market participants are expecting.
"There will be stress in the system," he said, possibly sending the U.S. economy into recession.
More For You
Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
Top Stories
