Bitcoin Dips Below 86000 as Rising Yields and Strong Dollar Weigh on Price
Bitcoin (BTC) faced renewed selling pressure on Tuesday, slipping below $86,000 as profit-taking intensified. US-listed spot ETFs saw a small outflow of $89.90 million on Monday, while Strategy added 334 BTC to its reserves, continuing a three-week buying streak. Rising US Treasury yields and a stronger US Dollar are creating headwinds for Bitcoin, potentially limiting its upward momentum.
Institutional demand showed mixed signals this week. Bitcoin spot ETFs recorded their first outflow in three days, raising concerns that continued outflows could extend Bitcoin’s pullback. On the corporate side, Strategy’s Michael Saylor announced the acquisition of another 334 BTC, bringing the company’s total reserves to 848,000 BTC, worth $5.70 billion in USD assets.
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. Additionally, the US Dollar Index (DXY) hit an intraday high of $102.53, further weighing on Bitcoin’s price. Simon-Peter Massabni, Head of Business Development at XS.com, noted that while institutional purchases and blockchain projects are providing support, elevated yields and a strong Dollar are dampening market sentiment.
Santiment’s Network Realized Profit/Loss (NPL) metric indicates that Bitcoin holders are booking significant profits, increasing selling pressure. Despite the pullback, Bitcoin remains above key support levels, including the 50-day, 100-day, and 200-day Exponential Moving Averages, suggesting a well-supported uptrend. The Relative Strength Index (RSI) remains in positive territory, though the Moving Average Convergence Divergence (MACD) histogram shows subdued momentum.