- Bitcoin briefly traded higher, reaching $28,000 during the U.S. trading session.
- Ethereum slipped to $1,670 despite the launch of Ether Futures ETF products.
- October historically has been a strong month for crypto, offering hope for market growth.
Bitcoin briefly traded higher Monday before retreating as the 10-year Treasury yield hit its highest level since 2008, underscoring the sway macroeconomic forces still hold over crypto prices.
BTC hovered around $28,000, up about 3% during the U.S. trading session, before giving back gains. Meanwhile, Ethereum slipped to $1,670 despite the much-anticipated launch of Ether Futures ETF products. Trading volumes for these new derivative funds remained muted on day one.
The backdrop of rising interest rates continues to pressure risky assets like cryptocurrency. An unexpected jump in ISM manufacturing data heightened expectations for further Fed rate hikes, sending the 10-year yield surging 11 basis points to 4.69%.
Crypto markets react to macro factors as new derivative products launch
Still, the slight Bitcoin bounce this week follows a 15% price gain over the past two weeks, influenced in part by positive SEC decisions regarding Ether derivative ETFs.
However, some analysts question the rally’s endurance given deteriorating spot market dynamics. QCP Capital took advantage of the price uptick to buy downside hedge positions, expecting resistance around $29,000–$30,000 to halt further gains.
Overall, crypto markets remain correlated to macro factors like yields, inflation, and Fed policy. However, some observers hope new products like Ether ETFs will incrementally bolster institutional investment and dampen volatility over time.
For now, muted ETF volumes indicate limited immediate impact. But advocates maintain that increased regulated access can only strengthen crypto’s maturation as an investable asset class in the long run.
October has historically been a strong month for crypto, lending hope that the markets can build on recent gains. But near-term trajectories remain uncertain given the macroeconomic headwinds.