Bitcoin Consolidates Near Month-to-Date Lows Amid Surging US Bond Yields

Bitcoin (BTC) consolidated near month-to-date lows on Tuesday as surging US bonds punished stocks and safe havens.

Key points:

Bitcoin joins risk assets feeling the pressure from skyrocketing US bond yields.

Catalysts, such as high oil prices, continue to impact market sentiment with the US-Iran war stakes still high.

Bitcoin is now at a "crucial level of support," the latest market analysis warns.

US 30-year yields reach highest since 2007

Data from TradingView showed BTC/USD lingering below $77,000 around the Wall Street open while preserving the previous day's floor.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Macro headwinds on the day continued to focus on US bond markets, with the 30-year yield hitting its highest levels since July 2007.

This sparked downside pressure on stocks, along with gold and silver. XAU/USD fell below $4,500 to reach its lowest levels since late March.

XAU/USD one-day chart. Source: Cointelegraph/TradingView

Commenting, Ole S. Hansen, head of commodity strategy at Saxobank, said that bonds reflected demand for “greater compensation for holding longer-dated debt amid war-driven energy inflation and mounting concerns over widening budget deficits.”

“This development has sent gold below USD 4,500 support, highlighting the current market reaction function driven by oil, inflation expectations, bond yields, and central bank rate expectations,” he wrote in a reaction on X.

US yield curve data. Source: Ole S. Hansen/X

News that US president Donald Trump had canceled strikes on Iran offered markets little relief.

In a post on Truth Social, Trump added that gulf countries should be “prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached” on the conflict.

Source: Truth Social

Bitcoin analysis sees "crucial" support holding

In crypto circles, the outlook became gloomier. Trader and analyst Michaël van de Poppe warned of a double BTC price headwind of high bond yields and high oil prices.

Related: BTC price ‘bull trap’ at $76.5K? Five things to know in Bitcoin this week

“Neither of these are progressive for risk-on assets (including Bitcoin), which means that we clearly need to see those reverse in order to see strength pouring back into the ecosystem,” he told X followers.

Van de Poppe said that Bitcoin itself did not “look great.”

“Bitcoin is at a crucial level of support and it seems to be that it's going to be holding,” a previous X post stated.

“Anything lower of $75,000-76,000 might signal that the accumulation needs to take longer.”

BTC/USDT one-day chart. Source: Michaël van de Poppe/X