Bitcoin slid below $84K (~₦132.7m) as US 10‑year Treasury yield hit 5.13%, sparking worry among crypto traders across Lagos and Abuja.
Bitcoin just fell under the $84,000 (~₦132.7m)mark, dropping to $83,200 (~₦131.5m)during Asian trading hours, while the US 10‑year Treasury yield surged to 5.13%—the highest level since 2007. This move has sent shockwaves through the crypto community here in Nigeria, where many investors are watching the market closely for any sign of a broader downturn.
What Happened
The surge in Treasury yields came as the US Federal Reserve signaled tighter monetary policy, with a 75% probability of a rate hike in October according to CME’s FedWatch tool. The Treasury also announced a $6 billion (~₦9.5tn) buyback of long‑dated bonds, which added to the sell‑off in the bond market. Bitcoin’s decline, meanwhile, was driven by a stronger US dollar and rising borrowing costs that have made risk assets less attractive.
Why It Matters
For Nigerian investors, the rise in Treasury yields means higher returns on US government debt and higher borrowing costs globally. This can lead to a stronger US dollar, which in turn puts pressure on crypto prices. Many Nigerians hold Bitcoin as a hedge against inflation, but the current environment may reduce its appeal as a safe haven. The move also highlights the interconnectedness of global markets and how policy decisions in Washington can ripple across the world.
Local Impact
Crypto exchanges in Lagos and Abuja have seen a spike in sell‑orders, with traders pulling out of Bitcoin and other altcoins to avoid further losses. Some local traders are turning to stablecoins like USDC or Naira‑backed tokens to preserve capital. The Central Bank of Nigeria’s recent crackdown on unregistered crypto exchanges has also added to the uncertainty, as investors worry about regulatory changes that could affect their holdings.
Looking Ahead
Analysts predict that Bitcoin could test the $82,833 (~₦130.9m)support level if the pullback deepens. However, if the US Treasury’s buyback program stabilises yields, Bitcoin may recover. For now, Nigerian investors are advised to diversify their portfolios and keep an eye on global economic indicators that could influence crypto prices.
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