Bitcoin tests the $76,000 support level as macro headwinds, led by a 4.93% 10-year Treasury yield and oil prices exceeding $110, drive a sharp decline in risk appetite across global markets.
Bitcoin fell below $77,000 as surging 10-year Treasury yields (4.93%) and oil prices above $110 raised inflation concerns, tightening financial conditions and triggering a sell-off in risk assets.
Bitcoin dropped below $77,000 as surging 10-year Treasury yields and Brent crude prices above $110 triggered a broad sell-off in risk assets. Investors are bracing for potential stagflation as rising energy costs and bond yields tighten global financial conditions, forcing a rapid repricing of market expectations.
Treasury yields serve as a benchmark for risk-free assets. When they rise, borrowing costs increase and financial conditions tighten, which typically reduces investor appetite for riskier assets like Bitcoin.
Rising oil prices contribute to inflation expectations. Since inflation data often lags, markets react to energy shocks by pricing in more aggressive monetary policy, which puts downward pressure on speculative assets.