Bitcoin Falls Below $77,000 as Treasury Yields and Oil Prices Pressure Crypto Market

Bitcoin fell below $77,000 during Monday trading in Asia as rising oil prices and higher U.S. Treasury yields weighed on risk assets. The decline came as traders reduced exposure to cryptocurrencies while concerns over inflation and interest rates continued to grow.

The broader market mood turned cautious after the 30-year U.S. Treasury yield climbed to 5.13%, its highest closing level since 2007. At the same time, the 10-year and two-year Treasury yields also pushed to 12-month highs, adding pressure on speculative assets like bitcoin.

Prediction market data showed traders expect the Federal Reserve to leave interest rates unchanged, with a 98% chance of no rate cut in June and a 94% chance in July. Higher interest rates often hurt bitcoin because investors can earn returns from safer assets such as government bonds, increasing the opportunity cost of holding non-yielding assets.

Long-Term Bitcoin Holders Stay Firm Despite Market Weakness

Despite short-term selling pressure, Binance Research said long-term bitcoin holders remain steady. Glassnode data cited by the firm showed nearly 60% of bitcoin supply has not moved in more than a year, while exchange balances have dropped to a six-year low.

However, Binance Research warned that short-term holders may remain vulnerable. The firm highlighted short-term holder MVRV, a measure of profit and loss for recent buyers, which remains below 1. This suggests many newer investors are still underwater, leaving bitcoin more exposed to macro-driven selloffs.

Key Events Traders Are Watching This Week

Presto Research said investors are closely watching Nvidia earnings on Wednesday, U.S. Producer Price Index (PPI) data on Thursday and further developments around the CLARITY Act, all of which could influence bitcoin’s next move.