Bitcoin holds above $77,000 as US yields surge

US bond yields drive market unease

The main driver weighing on the cryptocurrency market has been the rapid rise in US bond yields. As yields increase, investors become more risk-averse, prompting accelerated sell-offs in both equities and risk assets like Bitcoin. Gold followed a similar trend, with spot prices dropping to their lowest since late March. According to Ole S. Hansen, Head of Commodity Strategy at Saxobank, the surge in yields has been fueled by war-related energy inflation and swelling budget deficits, leading to heightened demand for long-term bonds and expectations for even higher returns.

“This development pushed gold below the $4,500 support level. It highlights that oil prices, inflation expectations, bond yields, and central bank rate decisions are shaping market reactions,” explained Ole S. Hansen.

Geopolitical frictions and investor sentiment

Soaring energy costs and renewed US-Iran tensions have made investors increasingly cautious. Even after US President Donald Trump called off a planned strike on Iran, markets saw little sign of relief. Trump emphasized that Gulf nations should be prepared for sudden, wide-ranging military action if an agreement with Iran could not be reached. These statements further amplified the sense of risk in the cryptocurrency space.

Critical support level eyed for Bitcoin

Ahead of Wall Street’s opening bell, Bitcoin continued sideways movement below $77,000, holding above the previous session’s low. According to the latest data displayed by , the BTC/USD pair grappled to find support at this level amid prevailing caution. Investors are closely monitoring whether this crucial floor can withstand increased volatility.

Market analyst and trader Michaël van de Poppe pointed out that the uptick in bond yields and energy prices is producing a dual squeeze on Bitcoin. He noted these developments pose strong headwinds for all risk assets, including digital currencies. Nonetheless, he indicated that Bitcoin’s vital support level is intact for now.

“Bitcoin is sitting right on a critical support line. For now, there are signals that this support will hold,” observed Michaël van de Poppe.

Uncertainty persists throughout the markets

Continued volatility in the bond market is driving persistent uncertainty across all sectors. Investors in both crypto and traditional finance remain on guard, with US budget deficits, energy prices, and geopolitical flashpoints expected to steer market direction in the coming period. Bitcoin’s movements are likely to stay closely linked to these macroeconomic developments.

The story originally appeared on COINTURK under the title “Bitcoin trades at critical support level.”