Analysis: US Treasury Yields Shock Risk Assets, Bitcoin Drops Below $79,000

Odaily Planet Daily News Bitcoin rapidly declined after the US stock market opened, once falling below the $79,000 mark, with an intraday drop of about 3%, trading near its lowest level since May. The market widely believes that this round of decline is closely related to the sell-off of risk assets triggered by the surge in US Treasury bond yields.

Data shows that the yield on the 10-year US Treasury note has risen above 4.55%, a one-year high, raising concerns about a tightening of liquidity and a revaluation of risk assets in the market. Analysts pointed out that this level previously triggered adjustments in US stocks and policy expectations last year and is once again becoming a key pressure signal.

Trading firm The Kobeissi Letter stated that the "crisis-like upward trend" in the US bond market is intensifying, with expectations for prolonged high interest rates rising. The market has begun to price in the possibility of even further interest rate hikes in the future, quickly cooling the previous "euphoric sentiment" towards risk assets.

From a technical perspective, analysts believe that after Bitcoin faced multiple rejections at the resistance level above $82,000, the support structure is weakening. In the short term, it may retest the $75,000–$77,000 range, with the market entering a phase of range-bound trading and direction selection. (Cointelegraph)