Bitcoin Rejected at $85K Amid Soaring Bond Yields
Bitcoin's recent gains have come to an end as it retreated below $83,000 after reaching a high of $84,450. This reversal occurred despite a short-lived rally to that level on Tuesday.
The US bond yields continued to rise, setting new multidecade highs with the 30-year yield reaching above 5.60% and the 10-year yield hitting 5.26%, nearing its June 2007 high. The surge in bond yields has led to a decline in precious metals, with gold falling by 3.6% on Monday to $4,115 per ounce.
Market commentator The Kobeissi Letter described gold's move as 'highly unusual.' Despite the US equities avoiding major volatility, new analysis from trading resource Mosaic Asset Company saw potential for renewed upside amid 'extremely oversold' conditions. However, this optimism is tempered by the presence of an oversold condition and a large jump in bearish views over the past two weeks.
Data from CoinGlass showed that exchange order-book liquidity has solidified itself above $85,000, making it difficult for Bitcoin to break through this level. Onchain analytics platform Glassnode also observed that coins held by long-term holders (LTHs) were clustered around $85,000, increasing the likelihood of profit-taking if Bitcoin attempts to surpass that level.