Bond Yields Weigh on Bitcoin as Risk-Off Sentiment Continues
Bitcoin's recent momentum faded due to rising bond yields, causing the BTC/USD pair to drop modestly to 83,450 from its month-high of 87,480. The focus has shifted to upcoming US macro data, with investors reacting to risk-off sentiment in the United States.
The BTC/USD pair will next react to the Conference Board's consumer confidence report and the US house price index report. However, the most important macro data to watch is the upcoming nonfarm payrolls (NFP) report, which is expected to show that the economy created over 50k jobs. A strong jobs report will suggest that the Fed will hike interest rates later this year.
Despite rising bond yields and risk-off sentiment, Bitcoin has some encouraging catalysts. Spot Bitcoin ETF inflows are on track for another strong month, adding over $2.7 billion in assets this month after adding over $3.5 billion last month. Additionally, Strategy continued its Bitcoin accumulation and now holds 847,666 coins.
The daily chart shows that the BTC/USD pair has pulled back in the past few days, moving from a high of 87,270 to the current 83,456. It remains slightly above the important level of 82,069, its highest point on September 3rd. This is a sign that it is forming a break-and-retest pattern, a common bullish continuation sign.