Key facts
- Bitcoin traded near $64,100, holding above $64,000.
- Ether remained stable near $1,893.
- The 30-year Treasury yield reached its highest point since 2007.
- Brent crude surpassed $91 per barrel.
- S&P 500 futures indicated a lower opening for the third consecutive day.
Bitcoin held its ground near $64,100 on Tuesday, showing resilience above the $64,000 mark despite broader market pressures from rising bond yields and escalating oil prices. Ether also remained relatively stable around $1,893, while other major cryptocurrencies saw minimal changes. The week's outlier was Hyperliquid, which gained 8.3%.
The pressure on risk assets stems from a confluence of factors. The 30-year Treasury yield climbed to 5.33%, its highest level since 2007, reflecting investor demand for higher compensation to finance government debt and hedge against persistent inflation. This trend of rising long-dated yields was observed globally, contributing to a 0.5% drop in S&P 500 futures, signaling a potential third consecutive day of losses for the index.
Simultaneously, Brent crude oil prices surged past $91 a barrel, influenced by escalating tensions in the US-Iran conflict, with reports of President Trump threatening to bomb Oman if it interfered with US operations. This combination of higher oil prices feeding inflation, which in turn pushes yields higher, creates a significant macro headwind. Increased borrowing costs typically draw capital away from riskier assets, reinforcing expectations of continued tight monetary policy from central banks.
Despite these negative macro signals, Bitcoin's ability to hold its value and even trade higher on the day, while stocks decline and yields hit multi-year highs, is notable. This relative strength is being interpreted by some as a sign of returning ETF demand absorbing the macro pressures. The market will be watching closely to see if Bitcoin can maintain this divergence. A sustained move above $64,500 could bolster the case for new buyer absorption, whereas further increases in oil prices towards $100 and continued yield increases would pose a significant test to Bitcoin's resilience.