Bitcoin Rejected at $85K as Bond Yields Hit Highs
Bitcoin (BTC) gave back its latest gains after reaching about $84,540, falling below $83,000 as US trading began. Persistent selling pressure near $85,000 remains the main obstacle to a sustained Bitcoin rally.
US Treasury yields continued to rise. The 30-year yield exceeded 5.60%, reaching a 24-year high, while the 10-year yield climbed to 5.26%, approaching levels last seen in 2007. Higher yields, inflation concerns, elevated oil prices and geopolitical tensions weighed on risk assets, including Bitcoin, stocks and precious metals. Gold fell 3.6% on Monday before partially recovering.
Order-book data from CoinGlass showed heavy ask liquidity above Bitcoin’s spot price, particularly around $85,000. Glassnode also reported that long-term holder supply was concentrated between $84,000 and $85,000. These holders may take profits if Bitcoin revisits the resistance zone, making a decisive break and hold above $85,000 important for further upside.
For traders, Bitcoin’s short-term outlook remains sensitive to bond yields, Federal Reserve rate expectations and liquidity. A clean breakout above $85,000 could revive bullish momentum, while another rejection may increase downside risk and trigger liquidations.
Bearish
The immediate market signal is bearish because Bitcoin failed to hold its rebound near $85,000 while US Treasury yields reached multidecade highs. Rising yields generally increase the appeal of relatively safer income-producing assets and raise the discount rate applied to risk assets such as cryptocurrencies. The resulting tightening in financial conditions can reduce speculative demand and increase volatility.
The technical setup also remains cautious. Heavy ask liquidity around $85,000 and a concentration of long-term holder supply between $84,000 and $85,000 create a clear profit-taking zone. Similar resistance-driven pullbacks have often produced short-term declines when buyers failed to absorb available supply. A break above $85,000, followed by sustained trading above it, would weaken this bearish view and could trigger short covering and renewed momentum toward higher levels.
In the short term, traders are likely to monitor Treasury yields, Federal Reserve rate expectations, liquidation levels and spot order-book depth. Another rejection could push BTC toward lower support areas and amplify leveraged liquidations. Over the longer term, the outlook is more balanced: strong economic data or persistent inflation could keep yields elevated, while oversold equity conditions and renewed institutional demand could support risk assets. The news therefore points to near-term downside pressure rather than a confirmed long-term trend reversal.