Bitcoin Market Faces Instability Amid Rising U.S. Treasury Yields
Overview
You are reading the Crypto Daybook Americas, providing insights on the overnight happenings in crypto markets and expectations for the day ahead.
Bitcoin started the week with a rise to $107,000, according to CoinDesk data, but has since retraced to approximately $102,000.
Market Dynamics
Despite recent pullbacks, Bitcoin is still seen trending upwards. The cryptocurrency’s market dominance has increased to over 64%, and derivatives show a bullish bias.
According to Deribit data, there’s a notable concentration of call options above $100,000, particularly around strike prices of $110,000, $115,000, and $120,000 for upcoming expirations.
Cautions and Concerns
While Bitcoin shows resilience, caution arises as the 30-year Treasury yield reached a notable 5%, attributed to Moody’s Ratings downgrading U.S. debt. Market participants are reminded of past instances where such yield spikes have negatively impacted Bitcoin prices.
Noteworthy Events
- Crypto:
- CME Group is launching cash-settled XRP futures today.
- Coinbase Global will replace Discover Financial Services in the S&P 500.
- Macro:
- President Donald Trump is scheduled to call Russian President Vladimir Putin to discuss the conflict in Ukraine today.
- The UK PM, Keir Starmer, will meet with EU leaders to discuss a landmark treaty.
Technical Analysis
Recent price movements suggest a volatile atmosphere for Bitcoin, with every dip being met with robust buying interest. Investors should monitor key levels of $102,800 for further price action.
Bitcoin’s long-term holder supply is approaching a yearly high, which may indicate increasing confidence in the cryptocurrency.
Cryptocurrency Stats
- BTC Dominance: 64.01%
- Total Fees: 5.92 BTC ($617,813)
Final Notes
The market remains sensitive to macroeconomic changes, especially concerning U.S. treasury yields. Continued vigilance is recommended, as the interplay between traditional finance and cryptocurrency markets evolves.
