Rising US yields push BTC below $79K

TLDR

Bitcoin (BTC) has slipped back below $79,000 as higher US bond yields and renewed rate hike bets weigh on risk assets.

1. BTC is trading around $78,400$78,800 after repeatedly failing to hold above $80,000, with several reports linking the drop to rising US Treasury yields and Fed hike expectations.
2. Higher yields and a stronger dollar raise the opportunity cost of holding non-yielding assets like BTC, but ETF inflows and strong on-chain activity are helping keep the broader uptrend intact.
3. Key things to watch now are support near $77,000$78,000, resistance around $81,000$82,000, and upcoming US inflation data and the next Fed meeting, which could reset the macro backdrop for crypto.

Deep Dive

1. What Changed For BTC Today

Multiple outlets report that Bitcoin fell below $79,000, trading near $78,800, down about 1 percent over 24 hours, as US Treasury yields climbed and markets priced a higher chance of a Federal Reserve rate hike next week. One report notes the 10 year yield near 4.8 percent and roughly a 60 percent probability of a 25 basis point Fed hike after stronger than expected US jobs data. Other coverage observes BTC slipping under $79,000 after briefly reclaiming $80,000, with a trading range around $77,000$82,000 and about $208 million in derivatives liquidations during the latest pullback, according to Bitcoin.com.

2. Why Rising Yields Pressure Bitcoin

Higher US yields raise the return on risk free assets such as Treasuries, which makes non yielding assets like BTC less attractive at the margin. The Tokenpost article highlights that higher yields and a stronger dollar are pressuring BTC and other major coins while oil near 97 dollars adds to inflation worries. Another piece notes that BTC is holding just under $80,000 despite stronger jobs data, higher yields and a firmer dollar, with analysts saying the Fed still sets the ceiling near $80,000 even as ETF inflows stay positive. That analysis also cites nearly $1 billion in weekly ETF inflows supporting BTC.

3. Levels And Events To Watch Next

Technically, several analysts flag $77,000$78,000 as near term support and $81,000$82,000 as resistance. Crypto.news points to BTC trading near $78,450, with weakened capital flows and a potential downside target near $76,000 if $78,000 breaks, while still noting BTC trades above its 20, 50, 100 and 200 day averages, a sign of a broader uptrend (crypto.news). On the macro side, upcoming US producer price and consumer price reports and the September Fed meeting are key. Softer inflation could ease rate hike odds and help BTC challenge $82,000 again, while hotter data and sustained high yields could keep BTC range bound or trigger deeper pullbacks.

Conclusion

Rising US yields and stronger rate hike expectations are putting a ceiling on Bitcoins attempts to hold above $80,000, even as ETF inflows and on-chain activity keep the broader trend constructive. If support around the high $70,000s holds and incoming inflation data cools rate worries, BTC could resume testing the $81,000$82,000 band, but a break of $78,000 into the mid $70,000s becomes more likely if yields keep climbing and macro data stays hot.