Bitcoin reached an almost two-month low as risk aversion weighs on the cryptocurrency market with global government bond yields climbing to the highest in about 15 years.
The largest digital asset by market value fell as much as 2.1 percent to $28,335 before paring its decline. The drop was the biggest on an intraday basis since August 1. Other cryptocurrencies were mixed, with Ether down about 1.2 percent and Cardano and Solana’s tokens both up around 1.5 percent.
The rise in global yields comes as resilient economic data challenges the view that central banks rates are peaking. Higher interest rates generally lessen the appeal of alternative investments such as cryptocurrencies.
The drop in Bitcoin follows a period in which the cryptocurrency has been trading in a narrow range for months. Gauges that measure the price swings of the original cryptocurrency have been trending down, with 90-day volatility reaching its lowest since 2016 this week, according to data compiled by Bloomberg.