Bitcoin Drops Below $77K as Rising Treasury Yields Pressure Crypto Market

Bitcoin (BTC) slipped below the $77,000 level during Monday trading in Asia as rising U.S. Treasury yields and higher oil prices continued to weigh on risk assets. The leading cryptocurrency briefly traded near $77,005 before extending losses, reflecting growing investor caution across global financial markets.

Market sentiment has turned increasingly cautious as expectations for Federal Reserve rate cuts continue to fade. The 30-year U.S. Treasury yield climbed to 5.13%, marking its highest closing level since 2007. Meanwhile, prediction platform Polymarket showed traders assigning a 98% probability that the Fed will leave interest rates unchanged in June, with a 94% chance of no cuts in July.

Higher yields typically reduce the appeal of non-yielding assets like bitcoin because investors can earn stronger returns from traditional fixed-income markets. Rising borrowing costs and persistent inflation concerns are also pressuring speculative assets, including cryptocurrencies.

Despite the bearish macroeconomic backdrop, on-chain data from Binance Research revealed signs of long-term investor confidence. According to Glassnode data, nearly 60% of the total bitcoin supply has remained inactive for over a year, suggesting long-term holders are still reluctant to sell. Bitcoin balances on crypto exchanges have also dropped to their lowest level in six years, potentially limiting immediate selling pressure.

However, Binance Research noted that bitcoin’s short-term holder MVRV ratio remains below 1, indicating many recent buyers are currently holding losses. This creates a more fragile market environment because traders already under pressure may react more aggressively if prices continue to decline.

Analysts at Presto Research said investors are closely monitoring several upcoming catalysts this week, including Nvidia earnings, U.S. Producer Price Index (PPI) data, and developments surrounding the CLARITY Act in Washington. These events could significantly influence broader risk sentiment and crypto market volatility.

For now, bitcoin remains caught between supportive long-term holding trends and growing macroeconomic pressure from elevated interest rates and inflation fears.