Bitcoin (BTC) is defying the risk-averse sentiment prevalent in European stocks this morning, hovering around the $69,000 level while the FTSE 100 index retreats under the weight of rising bond yields.
US markets open an hour earlier due to Daylight Saving Time (3:30 p.m. UTC), resulting in greater overlap with European sessions. This extensive overlap could lead to increased liquidity and larger movements in the price of Bitcoin.
Cryptocurrency traders are monitoring the situation to see if this gap will continue as Wall Street liquidity begins to show on the books.
Bond yields issue warning: will FTSE 100 lead to bearish sentiment?
London markets are today showing signs of pressure with the FTSE 100 index down 1.04%, heavily penalized by a sharp rise in 10-year British government bond yields.
Rising yields typically lead to a tightening of financial conditions and a withdrawal of liquidity from risky assets, a trend that typically causes stock and cryptocurrency prices to decline.
Bitcoin price movements often only stabilize once bond market risks subside, given the asset’s historical sensitivity to rising capital costs.
However, as the UK’s energy and industrial stocks fall, the crypto market is showing unexpected resilience. Normally, a rise in UK bond yields of this magnitude would have led to a simultaneous sell-off of digital assets, but this time that relationship is starting to deteriorate.
Bitcoin detachment from the FTSE 100: what is driving this divergence?
The correlation between the FTSE 100 and Bitcoin is currently neutral, indicating that cryptocurrencies are currently moving based on their internal mechanisms rather than global macroeconomic concerns.
This move is driven by continued institutional inflows into cash ETFs, creating a demand floor that ignores weakness in traditional stocks.
Data from CoinGlass shows that a “Short Squeeze” occurred on March 5, which actually led to a leverage liquidation above the $71,000 level, forcing sellers to cover their positions and fueling existing momentum.
With Bitcoin disappearing from exchanges due to the accumulation of institutional investments, the supply has become too thin to allow a sharp decline simply because London stocks are performing negatively.
Analysts note that as long as ETF buyers, led by giants like BlackRock, continue to absorb daily releases, the decoupling gap could widen.
The main resistance is at the level of 74,000 USD; If the bulls can overcome this problem, the bond yield narrative will become irrelevant in the short term.
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The levels that change everything: what are traders looking at?
Any decline below the $71,000 level, the starting point of the recent short sell-off, would invalidate the decoupling thesis and realign BTC with risk-free equity flows.
Market participants are also watching the 10-year US Treasury yields at the open; If they rise alongside UK bonds, the $71,000 support will be severely tested.
The crucial level to watch to maintain the bullish structure is USD 74,000, as a break above this level indicates a complete break from the decline of traditional markets.
If this level is maintained during the US session, it will confirm that the market has absorbed the yield shock and is aiming for new highs.
As the opening bell rings in the United States at 3:30 p.m. UTC, trading volume will determine whether this morning’s hold is a trap or a true trend.
If ETF flows remain strong despite the bond yield buzz, Bitcoin could close the day completely ignoring bond market volatility.
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The article Bitcoin separates from FTSE 100 index falling as UK government bond yields rise appeared first on Cryptonews Arabic.
