BTC Slumps to $66K amid Growing Interest in Rising Treasury Yields
Bitcoin’s price has dropped to around $66,000, reflecting a broader market decline, as investor attention shifts towards rising Treasury yields. The decrease in crypto futures rates and open interest suggests that the two-month rally may be coming to an end. Meanwhile, Ethereum (ETH) is trading above $3,300 as traders consider the possibility of the Federal Reserve delaying rate cuts until later this year. The CoinDesk 20 (CD20) index has also declined by 0.6% to 2,532. The recent surge in Treasury yields, driven by consistent inflation and strong manufacturing activity, has diverted capital from risk assets and zero-yielding investments like gold. Bitcoin’s retracement to $65,000 is mostly attributed to concerns over interest rates and rising Treasury yields, which tend to dampen investor appetite for risk. Betting platforms indicate that a rate cut in May is unlikely, with a 50-50 chance in June and a higher probability in the fall. Recent data also shows a significant liquidation of long positions, with over $245 million and $60 million in BTC positions being liquidated in the last 24 hours. With perpetual future funding rates and global futures open interest declining, it suggests that leveraged long positions are being closed. As Bitcoin and Ethereum prices fall below the 20-day moving average, some trend followers see yesterday’s downturn as the end of a two-month-long rally.