The rise in Brent crude oil and the increase in U.S. Treasury yields are putting pressure on risky assets.
Cryptocurrency liquidations have wiped out billions of dollars in long positions.
Ethereum also faces additional obstacles related to the ETF redemption process and discussions surrounding cryptographic vulnerabilities.
The crypto market is under pressure, and if the macroeconomic headwinds continue to accumulate, the pressure on Bitcoin prices may further intensify. Rising oil prices, increasing yields on U.S. Treasury bonds, a stronger dollar, and forced liquidations are all contributing to the decline in digital assets. If selling continues, neither BTC nor ETH can afford to be complacent.
Bitcoin price faces pressure from rising yields and Brent crude oil
With the escalation of tensions in the Middle East, including attacks on oil tankers in the Strait of Hormuz, the price of Brent crude oil has risen. Higher oil prices are exacerbating concerns about inflation, making the prospects for risky assets even more complex.
Meanwhile, the yield on 10-year U.S. Treasury bonds has risen to over 5.3%, the highest level since 2026, and the yield on 30-year bonds has also reached a multi-decade high. Recent minutes from the Federal Reserve's meetings have also mentioned the possibility of further interest rate hikes. This combination reduces the attractiveness of riskier investments and puts pressure on the crypto market.
The strengthening of the US dollar adds another obstacle to the crypto market.
The US Dollar Index has risen to around 102.4, posing another setback for digital assets. The current environment is not favorable: concerns about inflation are on the rise, borrowing costs remain concerning, and traders are also in a less advantageous position when making speculative bets.
Next came a wave of liquidation. Leveraged positions were forcibly closed, wiping out hundreds of millions of dollars in long positions. These forced exits could accelerate the selling pressure, turning what was already a weak trading day into an even steeper decline.
Ethereum faces additional selling pressure today.
Ethereum is also under additional pressure from institutional redemptions by ETF and market debates regarding technical and cryptographic vulnerabilities. In addition to the broader macroeconomic pressures, these concerns expose ETH to multiple sources of selling pressure.
Will a weakening Bitcoin drag down the market?
The key issue at present is whether BTC and ETH can stabilize. If prices continue to fall, more liquidations may further exacerbate the downward momentum of the entire industry.
At present, the importance of whether Bitcoin prices and Ethereum can find support is not limited to their respective price charts. As long as selling pressure does not ease and prices do not stabilize, the bearish trend in the crypto market may further deteriorate.
