Bitcoin (BTC) is struggling to confirm a breakout above $69,000 as concerns over inflation and rising US Treasury yields weigh on the market. The upcoming US elections and the possibility of Donald Trump’s return to the presidency have also impacted crypto sentiment.
BTC Price Struggles with US Treasury Yield Spike
Bitcoin recently faced selling pressure after being rejected at the $69,000 resistance level. This coincides with macroeconomic developments in the US, where the 10-Year Treasury Yield hit a three-month high of 4.2%, signaling renewed inflation concerns.
Despite the Federal Reserve’s recent interest rate cuts, the bond market suggests that higher rates could persist, impacting investor sentiment. According to CNBC, the US Treasury Yield spike indicates that inflation risks are still looming. Meanwhile, Bitcoin’s price has dipped 0.74%, currently trading around $67,033 with a market cap of $1.325 trillion.
Election Uncertainty Adds to Market Jitters
Adding to market uncertainties, the upcoming US presidential election has become a focal point for investors. As Donald Trump gains momentum in the prediction markets, there are growing concerns that his pro-growth policies could lead to shifts in the Fed’s strategy, potentially pausing interest rate cuts.
A report from 10x Research highlighted that Trump’s rising election odds could alter the Federal Reserve’s current course, creating additional market volatility.
Bitcoin’s Critical Moment: Breakout or Pullback?
Crypto analyst Skew has pointed out that Bitcoin’s recent price pullback aligns with expectations. However, for BTC to sustain its uptrend, it must break above $69,000 by midweek. Failure to do so could see the price dip toward $65,000, with several short-term exponential moving averages acting as support.
In contrast, commodity markets are thriving, with Gold and Silver hitting multi-year highs. Analysts suggest that if Bitcoin follows Gold’s rally, its price could surge as high as $230,000.
