Bitcoin Slips Below 200-day SMA as 10-Year Treasury Yield Hits Lowest Since April

The leading cryptocurrency by market value fell below its 200-day simple moving average of around $107,500, extending losses to $106,900, CoinDesk data show. Prices were down 7% for the week, following last week’s 6.5% drop. Other tokens such as XRP, SOL and ETH also extended losses, taking their respective weekly declines to 9% to 12%.

BTC’s losses followed over $500 million in outflows from the US-listed spot exchange-traded funds (ETFs) amid growing signs of liquidity stress in the financial system.

The price weakness is consistent with bearish signals from technical charts that suggest scope for a drop below $100,000 in the coming days.

Futures tied to Wall Street’s benchmark equity index, the S&P 500, fell nearly 1%. The index was dragged lower by banking shares on Thursday after Zions Bancorp and Western Alliance Bancorp disclosed links to fraud-linked loan exposure, stoking worries of a bigger fraud in the system.

The risk-off catalyzed demand for bonds, driving the US 10-year Treasury yield lower to 3.94%, the lowest since April. Bond prices and yields move in the opposite direction.

Early this week, the Philadelphia Fed Manufacturing Index tanked 36 points to -12.8, indicating softening activity and triggering concerns about the economy. That also added to the demand for longer-dated Treasury notes.