Bitcoin Holds Above $78K Amid Broader Crypto Sell-Off and Macro Pressures
Bitcoin traded above $78,000 during Asian hours on Thursday, down around 1% from the previous day. The broader cryptocurrency market saw significant selling pressure, with Dogecoin falling over 5%, BNB dropping about 4%, and XRP declining by 3%. Ether, Solana, and Hyperliquid's HYPE also dropped between 1% and 3%, leaving ETH near $2,475 and SOL at around $102. However, Tron bucked the trend, gaining less than 1% to approximately $0.34.
Despite the decline, a potential bullish signal emerged for Bitcoin. Its 50-day moving average crossed above the 200-day moving average on Tuesday, forming a 'golden cross.' FxPro analysts noted that similar signals in October 2024 and May 2025 did not generate significant rallies. However, they pointed out that this latest setup more closely resembles 2019, when Bitcoin surged about 90% in less than two months following the crossover.
Macro pressures remained a key obstacle for crypto and other risk assets. Brent crude climbed near $102 per barrel after Iran signaled readiness for a more intense conflict, raising concerns that higher energy prices could fuel inflation and keep interest rates elevated. The U.S. 10-year Treasury yield remained near 4.85%, its highest area since late 2023.
Investors were disappointed with the U.S. government's announcement to purchase up to $6 billion in longer-dated debt, which fell short of expectations for a larger intervention. Asian equities also weakened, with the MSCI Asia Pacific Index falling nearly 1%. Markets in Japan, South Korea, Taiwan, and Australia declined after the S&P 500 and Nasdaq 100 finished lower on Wednesday.
Markets are now focused on Friday's U.S. Consumer Price Index report. A hotter-than-expected CPI reading could revive expectations for a Federal Reserve rate hike, potentially adding fresh pressure to Bitcoin, cryptocurrencies, and global risk assets.