Bitcoin (BTC) experienced volatile trading around the $78,000 level as August approached its monthly close, while rising US Treasury yields added pressure to risk assets.
BTC/USD traded in a relatively narrow range during Monday’s Wall Street session, with the cryptocurrency briefly falling before recovering and trading around 1% higher on the day.
Bitcoin rebounded after US Treasury Secretary Scott Bessent discussed the US bond market during an interview with CNBC.
Bessent said he had not yet intervened to support the long end of the US Treasury yield curve, referring to 10-year and 30-year bonds.
The US Treasury recently announced plans to at least double the size of its debt buyback transactions to $4 billion starting in September. Although Treasury yields initially declined following the announcement, the 10-year yield returned to 4.76% on Monday, its highest level since January 2025.
The 30-year Treasury yield also climbed to 5.269%, coming within six basis points of its highest level since January 2007.
Market analysts have questioned whether the Treasury’s measures will be sufficient to control longer-term borrowing costs.
Bitcoin remained above its 50-week exponential moving average (EMA) at around $77,269, a level analysts consider important support for the current market structure.
Bitcoin’s monthly gains had approached 25%, putting the cryptocurrency on track for its strongest August performance since 2017.
However, technical indicators have raised concerns about weakening momentum.
Trader and analyst Rekt Capital highlighted a potential hidden bearish divergence between Bitcoin’s price and its daily relative strength index (RSI).
The daily RSI stood at 70.7 on Monday, remaining in overbought territory. Rekt Capital warned that continued lower highs in the daily RSI could contribute to further weakness in Bitcoin’s price.
US equities traded lower on Monday as renewed tensions surrounding US-Iran strikes added to market uncertainty.
The S&P 500 and Nasdaq Composite were both down around 0.4% during the session.
The combination of elevated Treasury yields, geopolitical tensions and month-end positioning is keeping investors focused on broader risk conditions as Bitcoin heads into September.
Bitcoin’s ability to hold the $77,269 support area could therefore remain important for determining whether its recent recovery continues or faces renewed selling pressure.
