Investing.com– Bitcoin moved little on Tuesday, nursing recent losses as surging yields and continued U.S.-Iran tensions kept investors largely averse towards risk-driven markets.
The world’s largest crypto rose 136% to $84,000 by 06:40 ET. It had risen as high as $85k over the weekend, but swiftly reversed course.
Markets took some encouragement from Wall Street major Citi expanding its digital asset services to Japan and the United Arab Emirates, amid hopes of more traditional finance adoption.
Yields, Iran tensions keep Bitcoin under pressure
Crypto markets were spooked by an overnight surge in Treasury yields, as markets continued to price in expectations of more interest rate hikes by the Federal Reserve.
Key employment data due this week is expected to offer more cues on rates, with any signs of U.S. labor market strength furthering the case for more hikes.
Benchmark 10-year Treasury yields soared to a 19-year high in September after the Fed hiked rates by 25 basis points and presented a hawkish outlook in the face of sticky inflation.
Adding to concerns over inflation, oil prices rose sharply this week amid little progress in U.S.-Iran negotiations. President Donald Trump on Monday denied reports that he had offered Iran some relief in exchange for assurances on Hormuz and its nuclear ambitions.
Trump earlier rejected Iran’s latest peace proposal.
Saudi-Houthi tensions continued, keeping markets on edge over further disruptions in oil supplies and limiting appetite for risk-driven assets.
Higher rates bode poorly for speculative assets like crypto, given that they increase the opportunity cost of investing in the sector over debt.
Tether’s USDT linked to Iran finances- Senate report
Tether’s USDT stablecoin has emerged as a “significant financial lifeline” for Iran and a means of bankrolling proxy groups such as Hezbollah, according to a report from Senate Democrats released on Monday.
The report was led by Senator Richard Blumenthal of Connecticut, the ranking Democrat on the Senate Permanent Subcommittee on Investigations. It examined 846 crypto wallets linked to Iran that have been sanctioned by Israel and the United States.
