Why Bitcoin Price is Steady Despite Rising Fed, BoJ, and Bond Market Risks

basis-point Federal Reserve hike, the Bank of Japan’s move to a 31-year rate high and crude oil remaining above $100 per barrel. BTC gained roughly 5.9% during Friday trading, rebounding sharply from this month’s low near $75,000 even as U.S. Treasury yields and fuel prices kept inflation risks elevated.

The rally matters because Bitcoin is advancing while several traditional macro conditions remain unfavorable for risk assets. The 10-year Treasury yield recently crossed 5%, U.S. diesel hit a record $6.4476 per gallon, and central banks continue to signal tighter policy, yet BTC has absorbed those pressures and moved back toward the $82,000 resistance area.

Interest Rates and Inflation Risks Remain

Bitcoin price rose for three straight days despite the elevated risks. One of the risks is that the Middle East is going through a crisis. Iran continues blocking the Strait of Hormuz, and today, the IRGC struck a tanker crossing the strait with an unknown projectile.

At the same time, Saudi Arabia continues to battle with the Houthis, a situation that has led to a big retreat in its oil shipments. This is important because Saudi is one of the biggest oil exporters in the world.

As a result, the data show that crude oil prices have remained elevated. Brent and the West Texas Intermediate (WTI) have jumped above $100 this week. These numbers mean that gasoline and diesel prices will continue rising in the near term.

The average gasoline price has jumped to $4.46, while diesel has moved to $6.4476. These numbers indicate that inflation will remain above 2% for months to come.

The other key risk came from the bond market, where global yields continued rising. The 10-year yield is hovering around 5%, while the 30-year yield is at 5.30%. These numbers pose a risk to Bitcoin and other risky assets because they usually draw people to the bond market.

Meanwhile, central banks are starting to tighten their policies. The European Central Bank (ECB) hiked interest rates by 25 basis points last week and officials suggested that they will deliver more hikes this year if inflation remains above the 2% target.

The Federal Reserve hiked interest rates by 0.25% to between 3.75% and 4%, with Kevin Warsh noting that the bank may decide to hike again. And today, the Bank of Japan (BoJ) decided to hike rates to 1.25%, its highest level in decades.

Another risk is that the CLARITY Act failed a crucial vote in the Senate. As a result, most traders believe that the act will not become law this year.

Bitcoin is Doing Well Despite These Risks

BTC price has done fairly well this week despite the risks. One of the main reasons for this is that Bitcoin is slowly evolving into a safe-haven asset. As a result, while the coin does not pay a monthly return, investors believe that it is a good safe-haven asset now that US public debt is rising. Data show that the US debt has jumped to over $40.2 trillion this year.

Another reason for this is that spot Bitcoin ETFs added over $159 million in assets on Thursday. These funds have had a net inflow of over $3.5 billion in the last three months. They now hold over $96.2 billion in assets under management.

Bitcoin Price Prediction: Technical Analysis

The daily chart shows that the BTC price has soared in the past few months. It jumped from a low of $57,800 to the current $77,960. The coin has formed a golden cross pattern, which consists of a bullish crossover between the 50-day and 200-day Exponential Moving Averages (EMAs).

The coin has also formed a bullish flag pattern, which is made up of a vertical line and a falling channel. It has also remained above the Supertrend indicator. Therefore, the coin will likely continue rising as bulls target the key resistance level of $82,135.