Bitcoin Recovers $24,000 On Strengthening Risk Onward Ahead Of Inflation Data

• Bitcoin surged above $24,000 for the first time in August on Monday.
• The weakening of US bond yields has pushed the cryptocurrency’s price higher.
• Bitcoin’s price surged in August but fell 50% in 2022.

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Bitcoin surged to $24,000 for the first time in August, a move that came ahead of financial markets evaluating a high-profile reading of US inflation this week.

Bitcoin surged a whopping 4% to $24,191.55, breaching that mark for the first time since July 31. The cryptocurrency has been struggling with a so-called crypto winter since November, which saw its price fall by around 50% in 2022.

The world’s most valuable cryptocurrency showed improvement on Monday as US stocks surged higher before turning jittery and as US Treasury yields fell.

“Oil prices have weakened again and this is weighing on bond yields, which supports silver, bitcoin, Swiss franc and Japanese yen – currencies and commodities that show very low or no yields,” said Fawad Razaqzada, market analyst at Forex.com. said in a statement early Monday.

US Treasury yields fell Monday after Friday’s rise on the back of July’s stronger-than-expected payrolls report. The US economy added 528,000 jobs last month, highlighting potential inflationary pressures at a time when the Federal Reserve has been raising interest rates to cool consumer prices.

Yields fall when prices rise. The 10-year Treasury yield fell 6 basis points to 2.77% and the 2-year Treasury yield fell 3 basis points to 3.12% on Monday.

Bitcoin is up more than 3% so far in August, contributing to July’s 19% surge. The digital asset gained traction last week after it was announced that Coinbase was teaming up with wealth manager BlackRock to help some of its clients gain greater exposure to cryptocurrencies, starting with Bitcoin.

Investors in bitcoin and other markets are awaiting fresh U.S. consumer price inflation data to be released by the Bureau of Labor Statistics on Wednesday. The July report could show a slowdown in headline inflation to 8.7%, according to an Econoday consensus estimate. The CPI rose to 9.1% in June, the fastest rate of inflation since November 1981, driven by food and energy gains.