Bitcoin Retraces from $109,754 Record High Amid Rising Interest Rates
Bitcoin's price reached a new all-time high of $109,754 before dropping approximately 3% to around $106,000. As of now, BTC trades just above $107,000.
- Other cryptocurrencies, including ETH and SOL, also experienced slight declines.
- The price fluctuation is attributed to profit-taking after a nearly 50% rise over the past five weeks.
- A poorly received U.S. Treasury bond auction led to increased yields, impacting risk assets and causing a market reaction.
- The Nasdaq fell 1.5%, while the S&P 500 dropped 1.3% following the auction news.
- Traders noted a lack of liquidity in exchanges since late 2024, making Bitcoin susceptible to significant price swings.
- The $110,000 level is identified as a critical point, with traders observing a concentration of supply and potential breakout signals.