Market Volatility: Bitcoin's Price Swing Amid Rising US Yields and Bullish Trends

By James Van Straten (All times ET unless otherwise stated) The week began on a high note for Bitcoin, with its value surpassing $107,000 - its highest point since January 24, according to CoinDesk data. However, it later retreated to $102,000 during the Asian morning session. Despite this pullback, the largest cryptocurrency continues its upward trend, creating higher highs and lows within an ascending channel. Its market dominance has also increased, exceeding 64%. The options market exhibits a bullish bias, with Deribit data showing significant open interest in call options above $100,000. This is particularly evident at strike prices of $110,000, $115,000, and $120,000, which are set to expire on May 30, with a notional value of $8 billion. These call options, granting holders the right to purchase BTC at a specified price, are often used to bet on a price increase. Glassnode data indicates widespread accumulation across various wallet cohorts, from holders of less than 1 BTC to those with over 10,000 BTC. The accumulation trend score has risen to 0.87, close to its maximum value of 1. A note of caution arises from the US 30-year Treasury yield, which has surpassed 5% following Moody's Ratings downgrade of US debt to Aa1 from Aaa, citing fiscal concerns. The last time the yield reached this level, on April 9, Bitcoin's price dropped to a monthly low of $75,000. Meanwhile, the UK has surpassed China as the second-largest holder of US debt, and Tether's US Treasury holdings are poised to exceed Germany's, potentially placing it among the top 20 foreign holders. As the US seeks buyers for its bonds, the issuer of the largest stablecoin may play a critical role. Remaining vigilant is essential. Key Events to Watch: Upcoming Token Events Conferences Token Talk By Shaurya Malwa Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether