Monthly closes in the crypto market are historically bumpy, but this time the volatility is being fueled by traditional finance. Bitcoin has experienced sharp swings within its local range as US Treasury yields approach 20-year highs, sparked by recent comments from the newly appointed Treasury Secretary, Scott Bessent.
To understand this dynamic, we have to look at global liquidity. When yields on US fixed income rise, institutional investors find a highly attractive, risk-free return in the dollar. This often puts pressure on risk assets or equities like cryptocurrencies, as the opportunity cost of holding Bitcoin becomes higher.
On top of that, the monthly close is one of the most closely watched candles by technical analysis traders. During these final hours of the month, large funds typically rebalance their portfolios, which amplifies price swings and can easily trap retail traders using high leverage.
When macroeconomic events and key technical levels collide, your best tool is not predicting the next move, but managing your risk. Remember that volatility is a double-edged sword; setting clear stop loss levels and keeping your position sizes appropriate for your account is the only way to protect your capital over time.
Source: cointelegraph.com
Educational content, not financial advice.