Bitcoin failed to make another run at $85,000 as sellers held the line above current levels, while surging US bond yields weighed on stocks and precious metals.
Bitcoin (BTC) reversed its latest gains after Tuesday’s Wall Street open as US bond yields continued to set multidecade highs.
Data from TradingView showed a local rally to $84,540 stalling as the US trading session began, with BTC/USD retreating below its daily opening level near $83,600.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
US bond markets showed no sign of cooling on the day, with the 30-year yield reaching new 24-year highs above 5.60% and the 10-year yield hitting 5.26%, on the cusp of passing its June 2007 high to levels last seen in April 2002.
US 10-year bond yield one-month chart. Source: Cointelegraph/TradingView
Geopolitical uncertainty surrounding the US-Iran war, high oil prices and persistent inflation kept investors cautious, while surging bond yields also sent precious metals lower. Gold fell 3.6% on Monday to $4,115 per ounce before rebounding to $4,166 at the time of writing.
Market commentator The Kobeissi Letter described gold’s move as “highly unusual.”
“The surge in yields is creating an extraordinary disruption across the precious metals market,” it wrote in a post on X.
XAU/USD one-day chart. Source: Cointelegraph/TradingView
As US equities avoided major volatility, new analysis from trading resource Mosaic Asset Company saw the potential for renewed upside amid “extremely oversold” conditions.
“On a year-to-date basis, the percent of stocks trading in short-term uptrends has only been this low back in late March when the S&P fell near correction territory. Many other measures of breadth show the presence of an oversold condition while investor sentiment has seen a large jump in bearish views over the past two weeks,” it wrote on Tuesday.
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