Bitcoin soared to $24,000 for the first time in August, shortly before financial markets assess a high-profile reading of US inflation this week.
Bitcoin added as much as 4% to $24,191.55, blasting above that milestone for the first time since July 31. The largest cryptocurrency by market cap has been grappling with a so-called crypto winter since November that dragged its price down by roughly 50% in 2022.
The world’s most valuable cryptocurrency added percentage points on Monday as US stocks moved higher before turning choppy and as US Treasury yields pulled back.
“Oil prices have weakened again, and this is providing drag on bond yields, which is supporting the likes of silver, bitcoin, Swiss franc, and Japanese yen – currencies and commodities that carry very low or zero yield,” Fawad Razaqzada, market analyst at Forex.com, said in an early Monday note.
US Treasury yields plunged Monday after Friday’s rally amid the unexpectedly strong July payrolls report. The US economy added 528,000 jobs last month, highlighting potential inflation pressures at a time the Federal Reserve has been ramping up interest rates to cool consumer prices.
Yields plummeted when prices surged. The 10-year Treasury yield on Monday lost six basis points to 2.77%, and the 2-year Treasury yield fell three basis points to 3.12%.
As of this moment, Bitcoin so has added up more than 3%, on top of its July surge of 19%. The digital coin gained ground last week following news that Coinbase is teaming up with asset manager BlackRock to help some of its clients gain greater exposure to cryptocurrencies, starting with bitcoin.
Investors in bitcoin and other markets are waiting for a fresh read on US consumer price inflation due Wednesday from the Bureau of Labor Statistics. The July report may show headline inflation cooling to 8.7%, according to an Econoday consensus estimate. The CPI rose to 9.1% in June, the fastest inflation rate since November 1981, paced by food and energy increases.