Bitcoin Price Risks 30% Dip As US 30-Year Bond Yield Hits 25-Year High

Bitcoin (BTC) faces a potential 30% decline as soaring long-term US borrowing costs collude with a bear pennant breakdown on the daily chart. The US Treasury recently sold $25 billion in 30-year bonds at a yield of 5.216%, the highest since 2001. Higher yields make bonds more appealing and risk assets like BTC less attractive. Bitcoin dropped over 1% following the US debt auction.

The price is currently consolidating within a bear pennant, with support near $62,850 and resistance above $67,500. A breakdown below the lower trendline could signal the bear pennant and expose Bitcoin to a 28%–30% drop to around $45,235. The technical outlook remains weak, with BTC trading below key moving averages and the RSI at 42, indicating bearish momentum.

The US federal deficit has surged to $1.799 trillion, making bonds more attractive despite the bearish impact on BTC. Persistent high borrowing costs make America's debt harder to refinance, but they could eventually push policymakers toward lower rates or increased Fed bond purchases, which could be favorable for BTC in the long run.