Bitcoin falls below $77,000: Rising bond and oil yields hit risk

The rate of the main cryptocurrency corrected sharply, dropping to a local minimum at $76,946 (-1.5% in the morning). Bearish pressure on the market increased due to the worsening geopolitical crisis in the Middle East and the jump in WTI oil prices above $110 per barrel. This triggered new inflation fears in the US and pushed 10-year Treasury yields to 2025 highs. Against this background, investors are massively reducing their exposure to risky assets. An additional shock to the market was the announcement by Michael Saylor that Strategy (formerly MicroStrategy) was for the first time considering a targeted sale of bitcoins in order to maximize shareholder value.

Why are the oil shock and US government bond yields putting pressure on BTC?

The sharp rise in WTI oil prices above $110 per barrel, provoked by the escalation of the conflict in the Middle East, instantly returned inflationary fears to the markets. Rising energy costs traditionally accelerate consumer prices, which jeopardizes the Fed’s plans to ease monetary policy.

In response to these risks, the US 10-year Treasury yield (US10Y) has soared to 2025 peaks. When risk-free government instruments offer such high returns, big capital begins to rebalance portfolios. Investors are hastily reducing investments in risky assets, including the technology sector and cryptocurrencies, transferring liquidity to more secure instruments.

Why did Michael Saylor talk about selling bitcoins?

Michael Saylor’s unexpected statement added fuel to the fire. The founder of Strategy (formerly known as MicroStrategy), which for years has been the epitome of the hoarding-free (“HODL”) strategy, has admitted that this is the first time the firm is considering a targeted sale of some of its Bitcoin reserves. The move is necessary to “maximize shareholder value” and optimize capital, Saylor said.

Although we are not talking about selling off the entire portfolio, but only about targeted operations, this is a significant psychological shift for the market. The breaking of a decades-long selling taboo by BTC’s largest institutional holder has caused concern among medium-term investors and triggered a wave of liquidations in the futures market.

Should we expect Bitcoin to continue to fall?

From a technical point of view, a breakout of the psychological $77,000 mark opens the way to testing strong support levels in the $75,000–$75,500 area. If buyers are unable to maintain this range, the correction risks dragging on.

However, analysts urge not to panic. The current decline looks like a classic reaction to macroeconomic irritants and market overheating after a protracted growth. Much will depend on the stability of the oil market and the rhetoric of Fed representatives. If geopolitical tensions subside, Bitcoin has every chance to quickly recover its morning losses and return to growth.