Bond Yields Surge, Bitcoin Slides to Key Support
The US 10-year bond yield broke a 19-year trend on Monday when it surged above 5%, putting pressure on global markets, including cryptocurrency. The surge had an immediate impact on Bitcoin, which slid to $76K in support.
Ahead of the Federal Reserve's interest rate decision on Wednesday, the crypto market is on edge, with a potential 25 basis point hike adding bearish pressure. The US economy is already under strain from rising bond yields, and this could have far-reaching implications for cryptocurrency prices.
From a technical analysis perspective, Bitcoin has formed a head and shoulders pattern, which could indicate a sharp fall to $73K if the support at $76K fails. However, some analysts believe that the market may soften in the coming days and weeks as Stochastic RSI indicators reach their top limit.