BTC holds beneath $77K threshold while US bond yields approach two-decade peaks
Bitcoin remained trapped under the $77,000 mark as US bond yields and crude oil prices climbed higher, with traders warning that BTC has reached a "crucial level of support."
On Tuesday, Bitcoin (BTC) maintained its position close to monthly lows as escalating US bond yields delivered a blow to equity markets and traditional safe-haven assets.
Key points:
- Risk assets, including Bitcoin, face mounting pressure as US bond yields surge to unprecedented levels.
- Market sentiment continues to be influenced by factors including elevated oil prices, while US-Iran conflict tensions remain elevated.
- Recent market analysis indicates Bitcoin has arrived at a "crucial level of support."
30-year US yields climb to levels unseen since 2007
TradingView data revealed BTC/USD hovering beneath the $77,000 threshold as Wall Street trading commenced, while maintaining support from the preceding trading session.
Throughout the day, macroeconomic challenges remained concentrated on US bond markets, where 30-year yields climbed to their most elevated levels witnessed since July 2007.
The development triggered selling pressure across equity markets, alongside precious metals including gold and silver. XAU/USD dropped beneath the $4,500 mark to register its weakest performance since the closing days of March.
In his assessment, Ole S. Hansen, head of commodity strategy at Saxobank, noted that bond markets were demonstrating a requirement for "greater compensation for holding longer-dated debt amid war-driven energy inflation and mounting concerns over widening budget deficits."
"This development has sent gold below USD 4,500 support, highlighting the current market reaction function driven by oil, inflation expectations, bond yields, and central bank rate expectations," he wrote in a reaction on X.
Reports that US president Donald Trump had canceled strikes on Iran provided minimal comfort to financial markets.
Through a post on Truth Social, Trump added that gulf countries should be "prepared to go forward with a full, large scale assault of Iran, on a moment's notice, in the event that an acceptable Deal is not reached" on the conflict.
Bitcoin technical analysis identifies "crucial" support zone maintaining its hold
Within cryptocurrency trading communities, sentiment turned increasingly pessimistic. Trader and analyst Michaël van de Poppe identified a dual challenge facing BTC price action from elevated bond yields combined with rising oil prices.
"Neither of these are progressive for risk-on assets (including Bitcoin), which means that we clearly need to see those reverse in order to see strength pouring back into the ecosystem," he told X followers.
Van de Poppe indicated that Bitcoin's technical picture did not "look great."
"Bitcoin is at a crucial level of support and it seems to be that it's going to be holding," a previous X post stated.
"Anything lower of $75,000-76,000 might signal that the accumulation needs to take longer."
