Bitcoin Bounces at $77,500 as Macro Headwinds Mount

Bitcoin (BTC) has staged a tentative recovery to trade near $77,500 after plummeting to two-week lows. The largest cryptocurrency's weekly drop of 4.61% was followed by a slight rebound on Wednesday, with prices opening at $76,757 and climbing past $77,400 by mid-morning Eastern time.

Investors are watching for signs that the U.S.-Iran standoff is de-escalating, but the macro backdrop remains challenging. Thirty-year U.S. Treasury yields have hit 5.198%, a level last seen in 2007, and the 10-year yield has touched 4.687%.

Higher yields tend to pull capital toward fixed income and away from risk assets, leaving Bitcoin to compete with a 5.2% risk-free rate while Brent crude trades above $110, keeping inflation concerns on the radar. Futures markets now price in a 44% chance of a Fed rate hike by December, a significant shift from earlier consensus on cuts.