Bitcoin Stalls at $85K as Rising US Yields Test Bullish Market Structure

Bitcoin's recent rally has stalled around $85,400 as rising US Treasury yields create headwinds for risk assets.

The five-year Treasury yield has climbed above 5%, while the benchmark 10-year yield has moved beyond 5.2%, putting both at their highest levels in roughly 19 years.

This surge in government bond yields can pressure cryptocurrencies and other risk-sensitive assets, making investors less willing to allocate capital toward more volatile assets.

Despite these macroeconomic challenges, Bitcoin's underlying market structure remains relatively constructive, according to a report from K33 Research.

The cryptocurrency has successfully absorbed a significant derivatives deleveraging event without experiencing the type of sharp decline that often accompanies large-scale liquidations.