Bitcoin hovers near $77,000 as global bond selloff tests post-rally resilience

Bitcoin (BTC) held near $77,000 on Wednesday as a selloff sweeps through global bond markets, putting the cryptocurrency's latest rally up against another bout of macro pressure.

Japan's benchmark 10-year government bond yield held above 3% for a second straight session after reaching the level for the first time since 1996 on Tuesday. U.S. and European yields also rose, while Brent crude climbed to above $95 as renewed U.S.-Iran hostilities fuel concerns over further disruption to energy supplies.

However, bitcoin's pullback from its local high has been limited so far. Joel Kruger, market strategist at LMAX Group, told The Block that its performance relative to equities and other risk-sensitive markets was encouraging. "Crypto continues to show its relative resilience against an increasingly difficult global backdrop," he said. "Dips continue to attract demand, reinforcing our view that the market is consolidating after its recent surge and allowing overbought technical readings to unwind."

A quieter derivatives market but strong ETP demand

The relative calm comes just over a week after bitcoin jumped 23%. Since then, it has traded between $76,800 and $81,600. According to a report from research and brokerage firm K33 on Tuesday, futures and perpetual open interest stood at $38.6 billion, down 1.8% over the past week, and perpetual open interest remains near four-month lows, while funding rates have remained in neutral territory.

That lack of leverage is a healthier setup for the market, according to Wincent Senior Director Paul Howard, pointing to spot accumulation. Traders have also been active in $80,000 September calls, though Howard said the positioning doesn't suggest they expect an explosive move. "The expectation here is that we continue to hold the current levels for the next fortnight," he said. "A pullback to the $65,000 range isn't expected; neither is there pricing to indicate we move sharply higher."

August was also a strong month for exchange-traded product demand. Global bitcoin ETPs took in 52,152 BTC, the most since November 2024, K33's Head of Research Vetle Lunde noted, while Strategy bought again too for the first time since June, adding 4,603 BTC for $369.7 million last week. "This marks a clear reversal after months of heavy selling, including record ETF outflows in May and June that appear to have been driven mainly by retail investors rather than institutions," Lunde said.

On the macro front, Friday's U.S. payrolls report comes next, with markets now pricing around a 70% chance of a September Fed hike following Warsh's Jackson Hole remarks.