Bitcoin (BTC) experienced a significant decline as it fell below the $80,000 mark during Friday’s Wall Street open, highlighting growing concerns surrounding risk assets in relation to the US bond markets. Analysis suggests that the uptick in US bond yields is contributing to a broader market rout, significantly affecting Bitcoin’s performance.
Recent data indicated that Bitcoin approached its lowest levels since May, with worries over rising US bond yields intensifying. The yield on the 10-year US Treasury notes surged above 4.55%, a critical threshold that had previously triggered a pause on tariffs against China by former President Donald Trump in May 2025. The Kobeissi Letter, a trading resource, emphasized that the current state of the bond market is becoming increasingly unsustainable.
With Bitcoin losing 3% of its value during the day and approaching May’s lows, the overall sentiment in the market has shifted. Stocks, which had achieved new all-time highs earlier in the week, also faced setbacks as trading resumed. The S&P 500 index followed suit, retracing some of its gains from earlier in the week.
Kobeissi noted that the market is beginning to react to surging bond yields, which are linked to expectations of a potential interest rate hike by the Federal Reserve. Current projections now show a 60% likelihood of interest rate increases in the near future, marking a significant pivot from prior predictions of rate cuts. This developing scenario raises concerns about inflation alongside rising mortgage rates and consumer loan delinquencies, which have reached their highest levels in over three decades.
Traders are closely watching Bitcoin’s performance as the asset wanders back toward low support levels. Some analysts have expressed skepticism regarding Bitcoin’s ability to breach local highs beyond $82,000, forecasted a return to the mid-$70,000 range. A trader noted the concerning trend that Bitcoin had fully retraced its gains from the previous day, signaling uncertain market dynamics.
As the trading environment evolves, analysts are leaning toward a range-bound market for Bitcoin, with expectations of continued movement between established support and resistance levels. The market anticipates a decisive breakout or breakdown in forthcoming sessions, adding to the tension surrounding Bitcoin’s price trajectory.
