Bitcoin Faces Sell Pressure as 10-Year Treasury Yield Rises

Bitcoin's internal market structure has weakened, according to CryptoQuant analyst Axel Adler Jr.'s Weekly Engine model. The model issued a 'WAIT' call on Sunday, unchanged for an eighth straight week, with 0% allocation in Bitcoin.

The model flagged rising seller pressure as coins flowed back to exchanges and demand for U.S. spot ETFs eased. Bitcoin's price closed -0.1% on the week, according to the analyst's model. As of writing, the apex currency was trading around $65,130, up over 1% in the last 24 hours.

Retail sentiment around BTC dropped to 'bearish' from the 'neutral' zone on Stocktwits, accompanied by 'low' chatter levels over the past day. The seven-day exchange netflow flipped from an outflow of 11,200 BTC to an inflow of 12,700 BTC, a reversal of 23,900 BTC, or $1.54B at the week's close.

The analyst pointed to the 'biggest liquidity indicator', the 10-year Treasury yield, which has risen by 14 basis points. This yield is effectively the risk-free return available to any investor willing to lend to the U.S. government for a decade.