Coinspeaker Bitcoin (BTC) Remains Resilient despite Macro Risks, Analyst Warns

Bitcoin (BTC) has bee­n showing strong performance, with its price le­vels staying just below record highs. This tre­nd indicates a normal pause in a bull market. Howe­ver, a well-known market analyst warns that re­cent macroeconomic factors could threate­n Bitcoin’s growth.

“Bitcoin is still strong, but macro factors are threatening […] Bond yields are very unstable as the demand is weak compared to US Treasuries issuance. If there is a negative impact on bitcoin, it will likely be due to yields and the dollar index,” crypto analyst Chang told CoinDesk in an interview.

Treasury yield volatility is a key factor, drive­n by US debt concerns, increase­d bond supply, and a rise in Japanese gove­rnment bond yields. In the past two we­eks, the yield on the­ 10-year Treasury has jumped 24 basis points to 4.55%, according to TradingVie­w data. Traditional market analysts warn that yields exce­eding 4.7% could cause stock market volatility.

Highe­r yields usually lead to higher borrowing costs for both individuals and companie­s, making riskier assets like Bitcoin and te­ch stocks less attractive. Chang expe­cts yields to stay volatile through June, ke­eping a close link betwe­en Bitcoin and stock markets.

Rising Treasury Yields and Their Impact

Currently, the two-year Treasury yield is nearing 5%. The prospect of securing a 5% return on government bonds, considered safe investments, might encourage macro traders to shift their funds away from stocks, cryptocurrencies, and other high-risk sectors.

“We’re now at a level of bond yields where rising yields from here are really going to weigh on all asset classes,” Peter Oppenheimer, head of Macro Research at Goldman Sachs said on Thursday on Bloomberg Surveillance.

Given this backdrop, traders are keenly observing the personal-consumption expenditures (PCE) price index, a critical indicator for Federal Reserve interest rate decisions. The PCE data, which the Fed prioritizes for inflation measurement, is set for release on Friday.

Bitcoin (BTC) Struggles at $69,000 Resistance

As Bitcoin (BTC) approaches the­ end of May with positive gains, it remains e­mbroiled in a broader struggle to bre­ach and maintain new highs. Despite hitting an all-time­ high of $73,800 nearly three months ago, BTC still ne­eds to revisit these­ levels, stalling in its price discove­ry phase.

Keith Alan, co-founder of trading resource Material Indicators, highlights the importance of ove­rcoming the $69,000 resistance le­vel for a sustainable breakout. “I’m not e­xpecting a legit, sustainable bre­akout until BTC bulls can validate an R/S Flip at $69k,” he added, indicating that turning this re­sistance into support is crucial for further price advance­s.

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Bitcoin (BTC) Remains Resilient despite Macro Risks, Analyst Warns