Bitcoin Fails to Break $85K Resistance Amid Rising US Treasury Yields
Bitcoin (BTC) traded around $84,500 on Wednesday as buyers struggled to regain control after an unsuccessful attempt to establish a foothold above $85,000 earlier in the day.
The cryptocurrency remains firmly above several major moving averages, but the short-term environment has become more challenging due to rising US Treasury yields and investor caution ahead of key economic reports.
Rising US government bond yields can create headwinds for cryptocurrencies like Bitcoin as they increase the returns available from lower-risk government debt. The five-year Treasury yield has climbed above 5%, while the benchmark 10-year yield has moved beyond 5.2% - its highest levels in roughly 19 years.
A report from K33 Research suggests that Bitcoin successfully absorbed a significant derivatives deleveraging event without experiencing a sharp decline, indicating a relatively healthy internal market structure.