Bitcoin Weakens Under Dollar Pressure as Derivatives Dominate Market

Crypto prices are under pressure from a stronger US dollar and higher bond yields, causing Bitcoin to weaken.

After breaking out last week at around $87,000, Bitcoin has retreated to near $83,000, failing to sustain gains in spot markets despite strong buying activity in derivatives markets.

The market's structure remains heavily tilted towards derivatives, with approximately 90% of trading volume driven by futures on platforms like Binance.

However, a 'golden cross' has formed between the EMA200 and EMA50 indicators for the first time since 2023, suggesting that price momentum may be building.