The crypto market once again feels the pressure of macroeconomic conditions after a rebound in U.S. Treasury yields toward 5% levels. This tension in sovereign debt dragged Bitcoin below the key $85,000 mark, flushing out the excessive leverage built up in recent longs.
What does this move tell us? Risk assets remain highly correlated with macro liquidity and global interest rates. When the cost of money rises, the appetite for risk temporarily contracts.
What to watch: The reaction of BTC’s current support level and the evolution of the bond market for signs of stabilization in yields. Keep proper risk management and avoid trading based on emotions.
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