Bitcoin (BTC to PKR) slipped back under the crucial $70,000 level as rising US market volatility and falling Treasury yields triggered renewed risk-off sentiment across global markets. Analysts warn that unless bulls reclaim $70K as support, BTC could retest its 2026 lows amid tightening liquidity and macro headwinds.
Bitcoin traded near $67,314 (≈ PKR 18.8–19.0 million) after repeated failures to sustain momentum above $70K. The move coincided with a sharp rise in the CBOE Volatility Index (VIX) to 22.5 a level historically associated with declining risk appetite and crypto weakness.
Market data shows a consistent inverse pattern between Bitcoin and VIX spikes. Previous VIX surges above 20 aligned with major BTC tops in 2024 and 2025, followed by steep corrections.
The US 10-year Treasury yield dropped to 4.02%, marking its steepest weekly fall in months and nearing its long-term trend average for the first time since 2022. Declining yields typically reflect investor caution and capital rotation into safer assets conditions that often suppress speculative markets like crypto.
Analysts say this macro setup suggests Bitcoin may remain in a prolonged consolidation or slowdown phase until a clear bullish catalyst emerges.
Liquidity and Sentiment Remain Weak
On-chain data shows stablecoin liquidity growth has slowed significantly, with only modest exchange inflows over the past month. Earlier in late-2025, large stablecoin inflows supported Bitcoin rallies, but current reserves indicate limited fresh buying power.
Meanwhile, the Crypto Fear & Greed Index recently fell to extreme fear territory, historically linked with cycle bottoms but also deeper bear-market resets when liquidity stays constrained.
If macro volatility persists and liquidity remains muted, Bitcoin risks revisiting yearly lows before any sustained recovery. A decisive reclaim of $70K remains the key bullish confirmation level for BTC in both USD and PKR terms.
