Bitcoin ($BTC) hovered around $74,000 at Wednesday’s Wall Street open, while stock markets rallied and US bond yields surged.
Key points:
- Bitcoin did not keep pace with US stocks. CoreWeave shares gained as much as 21% after the company beat Q3 revenue estimates.
- The US 10-year bond yield rose to 5.02%, following higher-than-expected US CPI inflation.
- $BTC traded in a tight range between its 21-week and 50-week trend lines, at $73,078 and $75,492, respectively.
Tech stocks climb as the 10-year yield returns to 5%
TradingView data showed $BTC/USD moving differently from US equities as investors resumed buying the dip in tech stocks.
$BTC/USD one-hour chart. Source: Cointelegraph/TradingView
AI stocks led early gains. Cloud-computing company CoreWeave jumped more than 20% after reporting better-than-expected Q3 revenue and raising its 2026 guidance.
CoreWeave stock one-hour chart. Source: Cointelegraph/TradingView
Nvidia, which fell on Monday and Tuesday amid continuing controversy surrounding CEO Jensen Huang, opened up around 2.5%.
Nvidia stock one-hour chart. Source: Cointelegraph/TradingView
Oil prices also rose, as optimism about a diplomatic resolution to the US-Iran war faded. Attacks on ships passing through the Strait of Hormuz continued, and analysis highlighted several practical obstacles to restoring pre-conflict traffic levels, even if an agreement is reached.
“Even in the event a deal is struck, an increase in flows through the waterway would still depend on mine clearance, insurance costs and whether or not shipowners would even be willing to take the risk,” LSEG Oil Research wrote in a note on Tuesday, Reuters reported.
US WTI crude rose 1.4% to $87.70 a barrel, after falling to $84 on Tuesday, its lowest level since late August. Brent crude gained 1.5% to $93.40.
CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
Stocks advanced despite Tuesday’s higher-than-expected Consumer Price Index (CPI) inflation reading, which sent US bond yields sharply higher. The 10-year yield returned to 5% on Wednesday for the first time since Oct. 29. The 30-year yield climbed as high as 5.378%, a level last recorded on Oct. 22.
US 10-year bond yield one-day chart. Source: Cointelegraph/TradingView
Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said bond prices reflected expectations of a more hawkish US Federal Reserve on interest rates. Markets have priced in a 0.25% rate hike in December, and the likelihood of a 0.5% move is now rising.
“Inflation breakevens today are focused on the drop in oil prices while regular Treasuries today are reacting to a Fed that is definitely going to hike next month, as of now, with one another in January,” Boockvar told CNBC.
Related: Here’s what happened in crypto today
$BTC price remains between two key trend lines
Bitcoin continued to trade in a tight range between its 21-week and 50-week simple moving averages, at $73,078 and $75,492, respectively. Volatility eased as traders waited for a new catalyst after the CPI report.
$BTC/USD one-day chart with 21-week and 50-week SMAs. Source: Cointelegraph/TradingView
Investor profitability weakened after Bitcoin fell below support around $75,700, the aggregate cost basis for the short-term holder (STH) group—entities that hold a given amount of $BTC for up to 155 days without selling.
On Tuesday, STH wallets transferred more than 47,000 $BTC to exchanges at an unrealized loss, potentially signaling a rise in panic selling if those coins were sold.
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