Bitcoin Dips Below $86,000 Amid Rising Yields and Stronger Dollar
Bitcoin faced renewed selling pressure on Tuesday, slipping below $86,000 as profit-taking intensified. US-listed spot ETFs saw a modest outflow of $89.90 million on Monday, while Strategy added 334 BTC to its reserves, continuing a three-week buying streak.
The rising US Treasury yields and a stronger US Dollar are creating headwinds for Bitcoin, potentially limiting its upside. The 10-year US Treasury yield reached a fresh two-decade high near 5.35% on Monday, making traditional fixed-income assets more attractive compared to riskier investments like Bitcoin.
Institutional demand showed mixed signals. While Strategy's accumulation suggests bullish confidence, the outflow from spot ETFs signals caution. Simon-Peter Massabni, Head of Business Development at XS.com, noted that cryptocurrencies are finding support in reduced rate hike expectations and institutional purchases, but persistent inflationary pressures continue to weigh on sentiment.
Technically, Bitcoin remains well-supported above key moving averages, with immediate support at $85,000. The Relative Strength Index (RSI) indicates buyers still retain control, despite a mildly negative MACD histogram reading.