Treasury Yields Pressure Bitcoin as Rally Stalls at $85K
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%, and the benchmark 10-year yield has moved beyond 5.2%.
The surge in Treasury yields can make investors less willing to allocate capital towards more volatile assets like cryptocurrencies. This pressure is evident as Bitcoin struggles to break through the $85,000 resistance zone.
Despite this challenge, a report from K33 Research suggests that Bitcoin has successfully absorbed a significant derivatives deleveraging event without experiencing a sharp decline in price.
The cryptocurrency's underlying market structure remains relatively constructive, with declining leverage and limited sell-side pressure. However, the technical setup is becoming increasingly complex, with conflicting signals from various indicators.