Cryptocurrency prices are surging to begin September even as stocks sink and U.S. Treasury yields spike.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bitcoin (BTC) is up 2% on Sept. 2 and trading at $110,800 to begin the month. Other cryptocurrencies are rising even more, with the price of Solana (SOL) up 3% and XRP (XRP) up a little more than 2%.
The rise in crypto stands in sharp contrast to equities, which are deep in the red to begin September. The benchmark S&P 500 index is down 1%, while the technology-laden Nasdaq Composite index is down 1.11% or 240 points. The selloff comes as U.S. Treasury yields spike, with the 10-year note at 4.281% and the 30-year bond hovering around 5%.
Tariff Jitters
U.S. Treasury yields are spiking and stocks are plunging after a court ruled that most of President Donald Trump’s tariffs are illegal, raising the prospect that the American government will have to repay the billions of dollars it has collected in import duties in recent months.
Investors are also growing weary of macroeconomic conditions and the outlook for interest rates, analysts say. The spike in Treasury yields and slump in stocks has sent the price of gold up to a fresh all-time high of near $3,600 an ounce. The price of silver is up 2% on Sept. 2 and trading at $41.10 per ounce, its highest level in more than a decade.
Somewhat ironically, September is typically the worst month of the year for crypto.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 1.94% in the last 12 weeks.
