At the start of Wall Street trading on Monday, Bitcoin (BTC) hovered close to $78,000 while US bond yields once again approached 20-year highs.
Key points:
- Bitcoin reacts as the US Treasury Secretary comments on bond markets in a mainstream media interview.
- Analysis warns that bonds are “ignoring” policy changes as new 20-year highs loom for the 30-year yield.
- BTC price analysis sees an emerging hidden bearish RSI divergence contributing to month-end weakness.
Bitcoin spikes as Bessent discusses bond yields
Figures supplied by TradingView demonstrated that BTC/USD maintained a tight band, registering an increase of roughly 1% across the day.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Following an initial dip at the onset of the American trading hours, the currency pair experienced a rapid recovery after US Treasury Secretary Scott Bessent hinted at additional interventions within the domestic bond sector. During a discussion on CNBC, Bessent pointed out that he had not yet taken steps to stabilize the long end of the yield curve, which comprises 10-year and 30-year bonds.
He informed the broadcaster, “I haven’t bought anything yet,” adding that he felt “fine” about yields recovering following the announcement.
Earlier this month, the Treasury disclosed plans to expand its debt buyback initiatives by at least double, bringing the figure to $4 billion beginning in September. Yields dropped initially upon that news, but by Monday, the 10-year yield climbed back to 4.76%, marking its peak level since January 2025.
US 10-year bond yield one-week chart. Source: Cointelegraph/TradingView
Meanwhile, the 30-year yield landed at 5.269% for the day, sitting just six basis points shy of peaks not witnessed since January 2007.
Market analysis publication The Kobeissi Letter noted via a post on X, “The bond market appears to be completely ignoring the US Treasury.”
US 30-year bond yield one-day chart. Source: Cointelegraph/TradingView
Prior to this, Ray Dalio voiced doubts regarding the Treasury’s capacity to manage bonds, even under the new scheme. Projecting a future domestic debt crisis, he highlighted both Bitcoin and gold as viable protective barriers.
He stated in a LinkedIn publication, “As general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of Bitcoin.”
Conversely, American equities traded in negative territory for the session, with both the S&P 500 and Nasdaq Composite Index sliding roughly 0.4% as anxieties surrounding fresh US-Iran military actions rippled through financial markets.
Bitcoin RSI sparks new bearish warning
As the August monthly candle closure approached, BTC/USD successfully defended its 50-week exponential moving average (EMA) of $77,269 as a technical floor.
Related: Bitcoin bear market ‘over’ as price metric copies 2023 recovery: CryptoQuant CEO
BTC/USD one-hour chart with 50-week EMA. Source: Cointelegraph/TradingView
Cointelegraph previously pointed out that this threshold serves as a critical boundary for bullish traders. Gains accumulated throughout the month have approached 25%, marking Bitcoin’s strongest August showing since 2017.
Offering a note of caution, market strategist and analyst Rekt Capital signaled the formation of a hidden bearish divergence on the daily charts connecting price action and the relative strength index (RSI). Despite positive RSI indications on the weekly timeframe, he cautioned that recent daily figures suggest fading upward momentum.
He shared with his X audience alongside a breakdown chart, “if the Daily RSI continues to make Lower Highs (blue), that’ll contribute to mounting weakness here.”
The daily RSI indicator stood at 70.7 on Monday, remaining inside the boundary designated as “overbought.”
BTC/USD one-day chart with RSI data. Source: Rekt Capital on X.com
This report has been compiled in adherence to Cointelegraph’s Editorial Policy and serves strictly educational goals. It should not be interpreted as financial advice or trade suggestions. Every trade and investment involves exposure to risk, meaning participants ought to perform thorough independent investigations.
Originally published at https://cointelegraph.com/markets/bitcoin-begins-volatile-monthly-close-as-us-bond-yields-eye-new-20-year-high?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
