Bitcoin (BTC) continues to trade below its 200-day simple moving average as the largest cryptocurrency by market capitalization faces ongoing headwinds.
Bitcoin continues to struggle despite the U.S. Clarity Act passing a key vote from the Senate Banking Committee, which moves the bill a step closer to becoming law.
BTC faces resistance at $82,000 U.S., a level it has been unable to breach in recent weeks. Analysts say the issue could be rising U.S. Treasury yields.
The two-year yield, which is particularly sensitive to expectations around interest rates, rose to 4.05% in early trading on May 15, a level last seen in June 2025.
The two-year Treasury yield has risen 13-basis-points this week and more than 65-basis-points since the end of March.
The benchmark 10-year yield is now at 4.5%, also its highest level since May of last year.
This week’s hotter-than-expected U.S. inflation report has raised concerns that consumer prices could remain high and lead the U.S. Federal Reserve to hike interest rates.
Analysts say the bond market is delivering a message that expectations for interest rate cuts this year are fading and the Federal Reserve may need to raise rates to lower inflation.
Higher bond yields act as a headwind for Bitcoin and other non-yielding assets such as gold.
As a result, BTC is currently trading at $80,400 U.S., below its 200-day simple moving average that’s just above $82,000 U.S.
A decisive break above that level would be seen as a bullish long-term trend for Bitcoin, say analysts.
But until that happens, Bitcoin is likely to continue treading water and remain rangebound between $78,000 U.S. and $82,000 U.S., where it has been since the end of April.
