Bitcoin Stalls Below $85,000 as Bond Yields Hit Records

Bitcoin retreats after failing to clear $85K

Bitcoin lost recent gains as sellers prevented the price from breaking above $85,000. The move came while US bond yields reached their highest levels in decades, weighing on stocks and precious metals.

The cryptocurrency briefly rose to $84,450 before dropping back below $83,000. This reversal happened shortly after the US stock market opened on Tuesday.

Market data highlights

• Bitcoin dipped below its daily opening price of roughly $83,600 after peaking near $84,540.
• The 30-year US bond yield climbed above 5.60%, setting a new 24-year high.
• The 10-year bond yield reached 5.26%, approaching levels last seen in April 2002.
• Gold prices fell 3.6% to $4,115 per ounce before recovering slightly to $4,166.
• Exchange order books show heavy sell orders, known as ask liquidity, concentrated around $85,000.

Bond yields drive global caution

Rising bond yields have made investors more cautious. Geopolitical tensions involving the US and Iran, along with high oil prices and ongoing inflation, contributed to this shift.

Market commentator The Kobeissi Letter called the drop in gold "highly unusual," noting that surging yields are disrupting the precious metals market.

Despite the pressure, some analysts see potential for recovery. Mosaic Asset Company noted that stock markets appear "extremely oversold." They pointed to strong economic data, such as higher-than-expected job growth in August, as a possible support for future gains.

Long-term holders create selling pressure

Data from analytics firm Glassnode shows that many long-term holders—investors who have held their Bitcoin for at least six months—are sitting on profits near the $85,000 mark.

Glassnode stated that more long-term holder coins are clustered between $84,000 and $85,000 than at any other price point. This concentration increases the chance of profit-taking if the price tries to rise above this level.

CoinGlass data confirms that resistance is thickening at $85,000, a pattern also seen earlier in the week.

What remains uncertain

It is unclear if Bitcoin can break through the heavy supply at $85,000. Market expectations suggest the Federal Reserve may raise interest rates by 0.25% at its upcoming October meeting, which could further impact asset prices.

Where the market stands next

For the rally to continue, Bitcoin needs to break above the $85,000 level and hold there. Until then, the price remains constrained by both macroeconomic factors and on-chain selling pressure.

Source

• Cointelegraph

Read also: Analysts Predict 10-Year Treasury Yield Hit 6%; Bitcoin Impact Depends on Cause