On May 21, 2025, Bitcoin briefly surged to a record high of $109,754 before quickly retracting to around $106,000, representing a near 3% drop. This decline was attributed to profit-taking and a selloff in traditional risk assets linked to rising interest rates following a weak U.S. Treasury bond auction. The yield on the 30-year Treasury surged to 5.07%, the highest in over two years, causing market turbulence. Analysts noted that the bond auction indicated weak demand, which could lead to significant repercussions in the bond market and affect liquidity in cryptocurrency trading. Despite Bitcoin's price volatility, experts suggest there is potential for further increases, but sharp corrections remain a significant risk. The $110,000 price level has been identified as a critical zone, with many traders watching the supply dynamics closely. The outlook for Bitcoin and other cryptocurrencies could remain cautious given the current macroeconomic pressures.

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