Bitcoin Price Plunges as Macro Threats Mount: Will it Hit $70,000?

Bitcoin's price has taken a hit after rallying above $79,000 on Monday. The cryptocurrency is now trading below $77,000, down over 1% in the last 24 hours.

The technical indicators suggest that the bulls may be running out of steam, following a massive rally three weeks ago. The Relative Strength Index (RSI) of 52 remains above the neutral level but significantly lower than the overbought reading of 83 recorded on August 21 when Bitcoin topped $82,000.

Four macroeconomic threats are weighing on the market, including rising government bond yields and persistently elevated oil prices. The benchmark 10-year Treasury yield has climbed above 5.02%, its highest level since mid-2007, while Brent crude reached approximately $107.37 per barrel.

The Federal Reserve is expected to increase interest rates by 25 basis points on Wednesday, with a Reuters survey finding that 85% of economists anticipate an increase in the federal funds target range to 3.75%-4%. The Bank of Japan may also tighten monetary policy just two days after the Fed's decision.