As traders continue to evaluate the effect of rising US bond yields on the cryptocurrency market, Bitcoin has struggled to capitalise on its recent bull run above $61,000. After Friday's choppy price action, Bitcoin, Ethereum, and other large-cap cryptocurrencies had a mixed weekend.
Over the weekend, Bitcoin encountered resistance at the $59,800 level, which it was unable to overcome. It then dropped below $55,000 on Sunday before recovering slightly in the evening hours of yesterday.
On Monday, the flagship cryptocurrency began the day in the green, rising 0.48% ahead of the London opening bell.
Mastercard, Bank of New York Mellon, PayPal, Goldman Sachs, and Morgan Stanley recently announced or launched new bitcoin-enabled services on their platforms, expanding the number of ways for wealthy investors to participate in the cryptocurrency market.
As Bitcoin tries to rally even higher, rising bond yields appear to be one of the few turbulence it faces. If Treasury yields rise, the purchasing power of the US dollar will also increase, affecting Bitcoin, which bills itself as an anti-fiat asset.
Bitcoin experienced a minor sell-off over the weekend, but it remained above a historically important technical support level, keeping hopes of prolonged bullish moves alive as the week began. With markets expecting more interest rate hikes in the 10-year Treasury note, an overvalued BTC/USD exchange rate is unsure where to go next.
Bitcoin has risen by more than 65% in the last month alone and by more than 100% this year.
Bitcoin recovered from a significant week earlier, when the Federal Reserve, Bank of England, and Bank of Japan announced their interest rate decisions and monetary policy guidance. The 10-year US Treasury yield continued to rise as the Fed signalled no intervention.