Bitcoin gyrated around $78,000 at Monday's Wall Street open as US Treasury yields pushed toward fresh multi-decade highs, with Treasury Secretary Scott Bessent's latest bond-market comments steering the swing. Long-dated yields stayed elevated even after the Treasury doubled its debt-buyback program, and a hidden bearish RSI divergence now clouds Bitcoin's strongest August since 2017.
Bitcoin rebounded sharply after an early dip at Monday's Wall Street open once US Treasury Secretary Scott Bessent addressed bond yields in a televised interview. BTC/USD traded in a narrow range, up around 1% on the day, according to TradingView data cited by Cointelegraph.
Bessent says he hasn't intervened yet
Bessent told CNBC he had not yet acted to shore up the long end of the yield curve, covering 10-year and 30-year bonds. According to Cointelegraph: "I haven't bought anything yet," he said, adding that he was fine with yields rebounding after the announcement. On Monday, the 10-year yield returned to 4.76%, its highest level since January 2025. The 30-year yield reached 5.269%, six basis points short of its highest levels since January 2007.
A buyback that hasn't cooled the bond market
The pressure traces back to Bessent's August 19 announcement, when he doubled the minimum buyback operation size from $2 billion to $4 billion, effective September 9. Yet the 30-year yield had already peaked near 5.33% around August 17-18, its highest since 2007, pressured by a fiscal deficit projected to exceed $1.8 trillion against more than $40 trillion in US public debt. Ray Dalio, forecasting a future debt crisis, named both Bitcoin and gold as potential hedges.
Risk assets wobble as Iran tensions add pressure
Fresh US strikes on Iran over the weekend also weighed on sentiment. WTI crude climbed 2.6% to around $85.60 a barrel. The S&P 500 slipped 0.5% to about 7,673 and the Nasdaq Composite fell 0.4% near 26,289. Fed Chair Kevin Warsh's hawkish Jackson Hole remarks lifted September rate hike odds to around 58%, up from roughly 35% before he spoke. Even gold slipped to near $4,440 despite its usual safe-haven role. Spot Bitcoin ETFs snapped a nine-day inflow streak even as Ethereum funds kept drawing cash.
Technical picture flags month-end caution
Ahead of the August monthly candle close, Bitcoin held its 50-week exponential moving average at $77,269 as support, with month-to-date gains nearing 25%, Bitcoin's best August since 2017. But trader Rekt Capital flagged a hidden bearish divergence: daily RSI readings are forming lower highs even as the weekly chart flashes bullish signals, a pattern he said could add to month-end weakness. Daily RSI stood at 70.7 on Monday, still in overbought territory.
Sources: Cointelegraph.com News, Decrypt, Crypto Briefing
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