Bitcoin fell back to around $83,000 after the 10-year U.S. Treasury yield moved back above 5.2% overnight, setting a fresh high not seen since 2007 and putting broad pressure on global risk assets. Altcoins posted steeper losses than Bitcoin during the move.
Cloud, chief analyst at Huobi HTX, said the decline looks closer to a normal retracement after a rebound than the start of a trend reversal. In his view, elevated Treasury yields are mainly weighing on valuations, while their impact on overall liquidity remains limited. He also said the crypto market’s own capital structure and holder cost basis have not been damaged, making the latest drop look more like position clearing ahead of key macro data.
Cloud warned that the split between Bitcoin and altcoins deserves attention. During periods of marginal liquidity tightening, capital tends to concentrate in large-cap assets with the highest certainty. Altcoins, by contrast, lack fresh inflows and often carry heavier leverage, which can amplify drawdowns. He said that pattern is likely to continue before this week’s PCE and nonfarm payrolls data. If the data miss expectations, altcoins may show greater upside elasticity but also higher risk. If the data come in above expectations, Bitcoin’s relative strength could stand out even more.
Bitcoin slipped to around $83,000 after the 10-year U.S. Treasury yield climbed back above 5.2% overnight, reaching its highest level since 2007 and weighing on risk assets globally. Altcoins fell more sharply than Bitcoin.
Cloud, chief analyst at Huobi HTX, said the move looks more like a normal retracement following a rebound than the beginning of a broader trend reversal. He said high Treasury yields are mainly pressuring valuations, while their effect on total liquidity remains limited. He added that the crypto market’s capital structure and holder cost basis have not been damaged, and described the latest dip as closer to position clearing ahead of key data releases.
Cloud also said traders should watch the divergence between Bitcoin and altcoins. As liquidity tightens at the margin, capital tends to move toward leading assets seen as having the highest certainty. Altcoins, in his view, lack fresh capital support and carry heavier leverage, which has magnified their pullback.
He said that divergence is likely to continue before this week’s Personal Consumption Expenditures (PCE) data and U.S. nonfarm payrolls report. If the data come in below expectations, altcoins may offer greater upside elasticity but with higher risk. If the data beat expectations, Bitcoin’s relative strength could become even more visible. Whether Bitcoin can stabilize at a key support level will be the main signal for judging whether this retracement has run its course.
BlockBeats noted that the article does not constitute investment advice, nor an offer, solicitation, or recommendation for any investment product.
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