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

Bitcoin's recent rally has stalled around $85,400 as rising US Treasury yields put pressure on risk assets. The five-year Treasury yield has climbed above 5% and the benchmark 10-year yield has moved beyond 5.2%, its highest level in roughly 19 years.

The surge in Treasury yields can create headwinds for cryptocurrencies like Bitcoin, making investors less willing to allocate capital towards more volatile assets. Despite this macroeconomic backdrop, Bitcoin's underlying market structure remains relatively constructive, according to K33 Research.

Bitcoin recently experienced one of its largest derivatives deleveraging events without suffering a corresponding collapse in price. A report from K33 Research found that the reduction was primarily driven by profit-taking rather than aggressive panic selling.