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Bitcoin Barely Holds $29K Alongside Sizable Altcoin Selloff

Bitcoin Barely Holds $29K Alongside Sizable Altcoin Selloff

Bitcoin Barely Holds $29K Alongside Sizable Altcoin Selloff

Interest rates continue to move higher across the globe, putting pressure on risk assets.

Interest rates continue to move higher across the globe, putting pressure on risk assets.

Interest rates continue to move higher across the globe, putting pressure on risk assets.

AccessTimeIconAug 2, 2023, 10:33 PM
Updated Aug 3, 2023, 1:20 PM

Bitcoin weekly chart. (CoinDesk Indices)

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  • Bitcoin is down 1.3% Thursday morning to $29,070 as XRP, ADA, SOL and DOGE all decline nearly 5%.
  • An overnight intervention by the Bank of Japan failed to stop the 10-year Japanese Government Bond yield from rising to a fresh nine-year high.

Cryptocurrency markets are selling off during U.S. morning hours Thursday, with the CoinDesk Market Index (CMI) off 1.3%, led by a 1.3% decline in bitcoin (BTC) and near-5% drops for altcoins like Ripple's (XRP), Solana's (SOL), Cardano's (ADA) and Dogecoin (DOGE).

Fears of a continued surge in G7 interest rates are as good of an excuse as any for today's selloff. The Bank of Japan (BOJ) overnight was forced to step into the markets for the second time this week to try and arrest rising yields. The move may have helped somewhat, but didn't stop the yield on the 10-year Japanese Government Bond (JGB) from moving to about a nine-year high of 0.65%.

Yields are higher across Europe as well, and the 10-year U.S. Treasury yield is up 8.75% basis points to 4.175%, its highest level of 2023. Billionaire hedge funder Bill Ackman overnight said he's short long-dated U.S. bonds "in size," and that we could soon see more than another 100 basis point rise in yields.

In the U.K., the Bank of England (BOE), as expected, hiked its benchmark lending rate by 25 basis points to a 15-year high of 5.25%.

Rising rates are hitting traditional markets as well, with U.S. stock index futures showing declines of about 0.5% across the major averages, adding to yesterday's big selloff. Europe is down 0.8% at midday.

Larger moves ahead?

In an email to CoinDesk, Jeff Feng, co-founder of Sei Labs, noted the swirl of recent news, including multiple applications for spot bitcoin and ether ETFs, that are figuring in the crypto market's fluctuations and could lead to even larger price changes.

“We're seeing a multitude of influential factors at play, which includes corporate investments, regulatory advancements, macroeconomic shifts, and potential for increased accessibility through financial products like ETFs," Feng wrote. "MicroStrategy's continued investment in Bitcoin certainly underscores their commitment, helping solidify corporate interest in digital assets. This, in tandem with anticipation around the upcoming Bitcoin halving event, is influencing market behavior, as traders often view such milestones as potential catalysts."

He added: "These periods that may seem range-bound could indeed be precursors to more substantial market movements. Staying informed about...multifaceted influences is key for any market participant, from individual traders to institutional investors.”

Edited by James Rubin and Stephen Alpher.

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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

James Rubin was CoinDesk's U.S. news editor based on the West Coast.

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.


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