Bitcoin holds below $85,000 as US Treasury yields rise and leverage declines

Bitcoin held near $83,000 on Wednesday after buyers failed to secure a close above the key $85,000 level earlier this week. Investors in the world’s largest cryptocurrency remain cautious amid rising US Treasury yields and ahead of a series of important economic releases this week.

Meanwhile, a report from K33 Research suggests that Bitcoin’s market structure remains relatively resilient after the market absorbed a significant wave of deleveraging in derivatives without a sharp decline in price.

Rising Treasury yields weigh on Bitcoin

Bitcoin buyers are losing momentum after the cryptocurrency failed to reclaim the $85,000 resistance level earlier this week, with the price remaining below that threshold since then.

Cryptocurrency markets are facing pressure from the same factor weighing on risk assets more broadly: the sharp rise in US Treasury yields. The five-year Treasury yield has climbed above 5%, while the 10-year yield has surpassed 5.2%, with both reaching their highest levels in 19 years.

Higher yields are drawing investors away from riskier assets, limiting Bitcoin’s ability to extend its rally.

Buyers are also reluctant to increase bullish positions ahead of several key economic releases this week. The Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, is due on Wednesday, alongside the final reading of US second-quarter GDP.

Traders will also monitor the Institute for Supply Management’s (ISM) manufacturing Purchasing Managers’ Index (PMI) on Thursday, followed by the closely watched nonfarm payrolls (NFP) report on Friday.

In addition, investors are awaiting comments from several Federal Open Market Committee members for further clues about the future path of US monetary policy. These developments could influence the US dollar and, in turn, provide fresh momentum for risk assets such as Bitcoin.

Lower leverage supports market structure

A K33 Research report released on Tuesday said Bitcoin had absorbed a significant wave of deleveraging in derivatives without suffering a sharp decline, leaving the market’s technical structure relatively resilient.

The report said Bitcoin derivatives markets had undergone an orderly reset, with combined open interest across Chicago Mercantile Exchange (CME) futures and perpetual contracts falling by 49,028 Bitcoin over the past seven days, the largest weekly decline since October 2025.

The reset appears to have been driven by profit-taking, while spot trading volumes remained below their annual averages despite rising prices, suggesting limited selling pressure.

The analyst said lower leverage, which reduces the risk of forced liquidations, combined with Bitcoin holders’ reluctance to sell despite the cryptocurrency trading around 33% below its all-time high, points to a significant imbalance in the potential paths for future price action.

The report noted that previous episodes of orderly deleveraging have not provided clear signals about the direction of prices, but have typically preceded periods of lower forward volatility as traders remained on the sidelines.

From a structural perspective, the market remains resilient, according to the report.

Total open interest is approaching 400,000 Bitcoin, a level seen only twice over the past two years: between March 9 and April 10, 2025, and between February 15 and March 15, 2026.

Both periods saw phases of price consolidation followed by significant Bitcoin gains as traders returned to the market.

The report concluded that lower leverage means the near-term risk of a widespread wave of long-position liquidations remains limited, providing a more stable environment for Bitcoin, which continues to trade above its key moving averages.