Bitcoin Price as U.S Treasury Yields Hit Multi- Decade Highs
Bitcoin (BTC) price is down 2% to $77.4k on Wednesday, underperforming a flat broader market, primarily driven by a macro shock from escalating U.S.-Iran tensions and surging oil prices.
Renewed geopolitical tensions and a significant spike in U.S. Treasury yields, which reached multi-decade highs, are fuelling bearish pressure across key cryptocurrency assets.
U.S. military strikes on Iranian targets near the Strait of Hormuz on September 1 sent Brent crude above $90, fuelling inflation fears. Concurrently, market odds for a September Fed rate hike jumped to 65%, lifting the 10-year Treasury yield to multi-decade highs.
This classic risk-off setup pressured equities and crypto in lockstep. Investors are piling positions in risk free assets as geopolitical tensions stoked inflation concerns, and markets are betting central bankers would hike rates.
Traders acknowledged that Bitcoin traded as a risk asset, with its drop driven by broader macro sentiment, not a coin-specific flaw. The U.S. August non-farm payrolls report on September 4; strong data could reinforce hawkish Fed expectations.
The sell-off triggered significant liquidations, with BTC long liquidations surging 628% over 24 hours to $87.67 million.
Technically, Bitcoin broke below the $77,700–$78,000 support, with the daily RSI cooling from overbought levels, confirming weakening short-term momentum.
Leveraged positions were forced out, amplifying the down move, while the breach of key support shifted near-term structure to bearish.
The immediate catalyst is geopolitical, but focus shifts to macro data. The key event is the U.S. jobs report on September 4. If Bitcoin defends $77,000, sideways action between $77,000 and $79,200 is likely.
However, a daily close below $76,500 would risk a deeper flush toward $75,000, potentially triggering another liquidation cascade.
The trend from August’s rally is intact but under pressure; the next 48 hours are critical to determine whether this is a healthy pullback or the start of a deeper correction.
Crypto analysts and traders advised investors to watch the price reaction at the $77,000 level and trading volume… any bounce—weak volume would suggest a lack of spot buyer conviction.
Bitcoin’s drop is a macro-driven risk-off move, exacerbated by leveraged washouts. Holding $77,000 is crucial to prevent a deeper technical breakdown.
Crypto market pressure is heating up after Strategy CEO Phong Le said in an interview on Bloomberg’s Crypto Channel that the company’s resumption of Bitcoin purchases is not price-driven, but based on long-term strategy.
Strategy holds $72 billion in assets, with $65 billion in Bitcoin and $7 billion in cash, and its net debt has been reduced to zero. Tesla Tokenised bStocks Climbs 3.64% as Trading Volume Spikes
