Bitcoin (CRYPTO: $BTC) is heading for a disappointing week as increasing Treasury yields exert pressure on riskier investments like stocks and cryptocurrencies. As of late trading on October 9, Bitcoin was priced at $82,250 U.S., reflecting a nearly 5% decline over the past week. The digital asset market has been struggling due to the consistent rise in yields on U.S. government bonds.
The yield on the key 10-year U.S. Treasury has surged to 5.25%, up from 4.79% since September 1. This significant jump in Treasury yields has occurred in just over a month. At this level, the yield is at its highest since April 2002. Rising yields make bonds more appealing to investors, prompting a shift away from risk-laden assets like cryptocurrencies.
As of October, Bitcoin has plunged 1.50%, a stark contrast to the 42% increase seen in the third quarter of this year. This downturn marks an unusual start for October, typically a strong month for Bitcoin, which has historically delivered an average rise of 18%. October is so generally favorable for cryptocurrencies that many investors refer to it as “Uptober.” However, the current trends do not seem to support this notion.
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Here’s a recap of the last week’s happenings in the crypto world…
Bitcoin ETF Withdrawals Surge: The ongoing increase in U.S. Treasury yields is driving a significant outflow of capital from Bitcoin exchange-traded funds (ETFs). As of October 7, approximately a dozen U.S. spot ETFs experienced net outflows totaling $487.1 million U.S., the highest since June 25 of this year, according to data from SoSoValue. After enjoying $2.65 billion U.S. of net inflows in September, withdrawals have begun for Bitcoin funds, amounting to $165 million U.S. in October so far.
Bitmine to Halt ETH Purchases, Says Tom Lee: Ethereum’s value fell 5% following the announcement from Bitmine Immersion Technologies (NYSE: $BMNR) that it will cease purchasing the cryptocurrency. During a recent conference, Bitmine Chairman Tom Lee stated that the company would stop accumulating ETH once it accounts for 5% of the token’s circulating supply. According to Lee, they are close to this threshold, with Bitmine currently holding 6,016,414 ETH tokens, just above 4.9% of the total 122.1 million in circulation.
Robinhood Increases Bitcoin Holdings by $25 Million: Online trading platform Robinhood Markets (NASDAQ: $HOOD) has added $25 million U.S. worth of Bitcoin to its corporate balance sheet. This move is intended to showcase the company’s commitment to the cryptocurrency sector.
Robinhood joins a growing list of U.S. firms such as Tesla (NASDAQ: $TSLA) and Block (NYSE: $XYZ) that are incorporating Bitcoin as part of their treasury assets.
Strategy Acquires 334 Bitcoin: Strategy (NASDAQ: $MSTR) has moderated its Bitcoin purchasing activity this past week, acquiring 334 coins. Led by Michael Saylor, the firm spent $28.7 million U.S. on these acquisitions, raising its total Bitcoin holdings to 848,000 BTC with an average purchase price of $75,441 U.S. Additionally, the company raised $15.7 million U.S. through a common stock sale, bringing the current value of its Bitcoin assets to $72.93 billion U.S.
NFL Labels Prediction Markets as ‘Gambling’: The National Football League (NFL) has classified prediction markets as “gambling” rather than “swaps,” countering claims made by companies like Kalshi and Polymarket. This statement was made in a brief submitted in relation to an ongoing case before the U.S. Supreme Court. The NFL is backing New Jersey’s argument that prediction markets should be regulated similarly to casinos and other gaming businesses.
Thailand Welcomes Trading of Crypto ETFs: Thailand’s main stock exchange is set to allow trading in Bitcoin and Ethereum (CRYPTO: $ETH) exchange-traded funds (ETFs) starting October 16. Initially, these will be the only cryptocurrency ETFs available on the market. Each ETF must function as a passive investment fund aimed at tracking the spot prices of Bitcoin or Ethereum.
Stripe Expands Stablecoin Payment Cards Globally: Financial tech company Stripe has announced plans to broaden its stablecoin payment card offerings to over 100 countries by the end of the year. This initiative is based on the belief that digital dollars may serve as an alternative payment method alongside traditional currencies. The use of stablecoin cards has surged in the rapidly growing $300 billion U.S. digital dollar market, with $1.2 billion U.S. spent via these cards in September alone, three times higher than the previous year, according to Paymentscan.
Winklevoss Twins Set to Launch New Zcash ETF: Cameron and Tyler Winklevoss are gearing up to introduce a new exchange-traded fund (ETF) for Zcash (CRYPTO: $ZEC). The ETF will invest directly in ZEC, with a proposed annual fee of 0.25%, and will be listed on the Nasdaq under the ticker symbol “WINK.” Approval from the U.S. Securities and Exchange Commission (SEC) is still pending.
Crypto Job Openings Tripled in September: As the cryptocurrency market rebounds, companies are actively hiring, marking an end to the “crypto winter” that began last year. In September, crypto businesses posted 1,241 job vacancies, up from 886 in August and 382 in July, based on data from CryptoJobsList. This figure exceeds the 573 jobs offered in January, previously the busiest month until August.
Coinbase Targets Bank Partnerships: Cryptocurrency exchange Coinbase Global (NASDAQ: $COIN) is focusing on banks as institutional interest in cryptocurrencies escalates. Coinbase is enhancing its services for banks and traditional financial institutions that are progressively adopting Bitcoin and other digital currencies. The firm offers a range of services, including custody, trading, financing, and settlement to major banks globally.
