Bitcoin Holds Steady as Stocks Sell Off. Why Crypto Traders Remain Bullish.

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Bitcoin has been relatively stable despite turmoil in the stock market and surging bond yields this week. October could still be 'Uptober,' analysts say.

Bitcoin and other cryptocurrencies held relatively steady on Wednesday despite a selloff in the stock market as rising bond yields heaped pressure on risk-sensitive assets. Traders remain bullish about big gains in the weeks ahead.

“Despite rising yields and dollar strength, Bitcoin has held up remarkably well due to limited selling and strong conviction from long-term holders,” said Alex Thorn, head of research at crypto financial services group Galaxy. “A clean break above $28,000 would pave the way for Bitcoin to begin to test the $30,000 range.”

Higher yields tend to add pressure to risk-sensitive assets, because better returns on risk-free government debt gives fewer incentives for investors to pile into riskier bets like Bitcoin. While climbing yields have hammered stocks this week, cryptos have held steady as traders continue to be bullish after a historically good September, which may pave the way for more gains in the month ahead.

 

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