Bitcoin is flat over the past 24 hours just short of $26,200, but earlier in the day had risen above $26,800
The price of bitcoin appeared set to regain the $27,000 level early Wednesday, but the rally was turned back alongside a renewed decline in the U.S. stock market.
In mid-afternoon action, the S&P 500 and Nasdaq were each lower by around 0.6% – by themselves, not big declines, but both indexes are now lower by around 10% since the beginning of August.
Bitcoin is flat over the past 24 hours just short of $26,200, but earlier in the day had risen above $26,800.
Although interest rates are continuing to trend higher, which in theory should put pressure on price of bitcoin, some have contended that the typical relationship between interest rates and bitcoin is breaking down, while others believe there is a bullish argument to be made about bitcoin based on its technical aspects.
The drop today in equity markets came as the 10-year Treasury yield soared another 9 bps to a new 16-year peak of 4.63%. Alongside the increase in interest rates, the price of oil was higher by over 3.5% to a new 2023 peak of $93.53 per barrel. The term “stagflation” – suggesting a combination of slow growth and fast inflation in the economy – has not been seen a lot since the 1970s, but rapidly increasing rates and oil prices are likely to trigger a rise in usage.
Specifically, a Wall Street Journal survey showed 41% of U.S. Chief Financial Officers as cutting capital spending plans and 42% cutting back on operational costs in response to higher rates. An earlier survey conducted in Q4 of last year showed only 30% as planning on trimming capital spending and 27% looking to cut operational costs.
