Bitcoin (BTC) traded below $82,000 after Monday’s Wall Street open as crypto diverged from rising stocks and bond yields.
Key points:
- Bitcoin gave up early-week gains as ask liquidity amassed above $83,000 across exchanges.
- The Nasdaq Composite Index followed Asian equities higher, gaining 1.5% in the first hours of trading on Monday.
- US bond yields continued to move in lockstep with stocks, with the 10-year yield back at 5.13% ahead of major corporate earnings announcements.
Bitcoin treads water as stocks, bond yields rebound
Data from TradingView showed BTC/USD dipping to $81,678 on Bitstamp after reaching $83,062 earlier in the day.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Both Asia and US equities rallied to start the week, helping to recoup losses from the week prior as selling pressure on tech stocks eased. South Korea’s tech-heavy KOSPI Composite Index finished the day 1.76% higher at 5,768 points, while the Nasdaq Composite Index was up 1.5% at the time of writing.
Nasdaq Composite Index one-hour chart. Source: Cointelegraph/TradingView
Continuing a pattern observed in recent weeks, US bond yields rose in lockstep with equities ahead of anticipated strong corporate earnings by tech giants. Several of these are due for release on Tuesday and Wednesday, including Meta, SpaceX and Tesla. The US 10-year and 30-year yields reached 5.13% and 5.46%, respectively.
US 10-year bond yield one-day chart. Source: Cointelegraph/TradingView
In its latest analysis, trading company QCP Capital saw bond-market stability as key to Bitcoin upside momentum. It also warned that BTC could suffer from a repeat of last week’s tech-stock sell-off.
“Broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained. Conversely, a sustained Treasury rally could provide support for risk assets, particularly if accompanied by declining real yields and a weaker US dollar,” it wrote.
$83,000 sellers keep BTC price in check
On lower time frames, Bitcoin price action encountered friction after ask liquidity thickened above $83,000 on exchange order books.
Related: Stocks rebound into key tech earnings: Three things to know in Bitcoin this week
Data from CoinGlass showed this wall of asks pressuring BTC/USD lower, while 24-hour cross-crypto liquidations totaled $335 million.
Crypto liquidation heatmap. Source: CoinGlass
Amid rangebound conditions, onchain analytics platform CryptoQuant showed Bitcoin whales reducing activity. The Binance whale ratio, which records the share of the 10 largest inflow transactions relative to total inflows, fell to 0.45 from 0.54 at the start of October.
“The decline in the Whale Ratio indicates that the proportion of large BTC deposit transactions relative to total exchange inflows is decreasing, potentially reflecting shifts in whales’ trading strategies and asset management activities,” CryptoQuant summarized.
Binance Bitcoin exchange whale ratio. Source: CryptoQuant
