[DigitalToday reporter Yoonseo Lee (이윤서)] Bitcoin fell below $76,000, hitting its lowest level this month. A surge in global government bond yields and setbacks in U.S. cryptocurrency regulation legislation added to market pressure.

On Sept. 15 (local time), blockchain media outlet Cointelegraph reported that bitcoin fell to $75,600 around the time U.S. stock markets opened. It gave up gains after rising to $79,600 the previous day and turned weaker.

The so-called Clarity Act, aimed at overhauling the cryptocurrency regulatory framework, also failed to clear the Senate hurdle. A vote to end debate to begin floor consideration did not secure the 60 votes needed, making prospects for legislation within the year uncertain. It was not a vote to decide final passage of the bill itself, but it was negative for the industry, which had expected clearer regulation.

Trading firm QCP Capital said that even if a procedural vote passed before the ballot, the immediate market impact could be limited. It added that if the roles of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission become clearer, regulatory uncertainty could ease and support institutional adoption of cryptocurrencies in the medium term. "Procedural progress does not guarantee final passage," QCP said, adding that the subsequent legislative schedule would determine the actual market impact.

Bitcoin's weakness also coincided with turmoil in the bond market. As U.S. equities were weak on the day, major government bond yields surged to long-term highs. U.S. 10-year Treasury yields rose above 5 percent for the first time since November 2023 and climbed as high as 5.041 percent intraday, the highest since June 2007.

A Reuters tally showed the average yield on 10-year government bonds in the Group of Seven rose to 4.285 percent, the highest level since mid-2008 during the global financial crisis. Britain's 30-year gilt yield hit 5.95 percent, the highest since March 1998, and Japan's 10-year government bond yield stood at 3.04 percent, the highest in 30 years.

The sharp rise in yields is weighing on valuations across risk assets. Financial markets analysis firm The Kobeissi Letter raised the possibility that major central banks could return to tightening. "Monetary policy is shifting, rate hikes are returning, and the next battle against inflation has started," The Kobeissi Letter said, adding that current yield levels are not sustainable.

Firm international oil prices were cited as a factor behind the rise in government bond yields. Concerns grew that higher energy prices could reignite inflation as the expansion of conflict in the Middle East threatens key shipping routes. On the day, U.S. West Texas Intermediate crude approached $105 a barrel, nearing its highest level since early May.

The cryptocurrency market faces a double burden from regulatory uncertainty and rising rates and oil prices. As bitcoin weakens along with other risk assets, factors expected to determine the market's next direction include follow-up discussions on the Clarity Act, interest rate decisions by the U.S. Federal Reserve and the Bank of Japan, and movements in international oil prices.

It's clear what's coming next. Monetary policy is shifting, rate hikes are returning, and the next battle against inflation has started. Just as we saw Treasury intervention in the US, the UK will likely soon intervene. Yields are simply unsustainable at current levels. pic.twitter.com/D9lfm9V4XK