Bitcoin (BTC) reached multi-month highs following Thursday's Wall Street open, hitting $72,505 on Bitstamp and marking a gain of more than 4% on the day. The upward movement came as US equities opened lower and bond yields saw volatility following statements from US President Donald Trump regarding Iran.
President Trump threatened Iran with what he termed "Economic D-Day," pledging "economic warfare and isolation on an unprecedented scale" amid frustrations over a lack of a deal concerning the Strait of Hormuz oil route. Following the remarks, WTI crude oil climbed to $87.69 per barrel, its highest level since July 24.
The geopolitical comments also coincided with a rebound in US government bond yields. The 30-year yield rebounded to 5.266% after trading as low as 5.179%, an increase of 9 basis points that nearly erased previous losses. The 10-year bond yield similarly reversed an earlier drop that had followed a US Treasury announcement regarding bond-market liquidity interventions.
Despite Bitcoin gaining nearly $10,000 over a four-day period to hit its highest levels in 11 weeks, market participants and analysts questioned the durability of the rally. Trader and analyst Rekt Capital noted on social media that technical indicators currently point to $60,000 as a weakening macro support level, stating that Bitcoin needs to sustain a larger rally to invalidate bear market trends.
Meanwhile, CryptoQuant CEO Ki Young Ju pointed to a return of positive demand for Bitcoin across both spot and derivatives markets, noting that if the modest demand holds for another month, it could indicate the end of the bear market. Cointelegraph previously highlighted a lack of spot demand as a missing catalyst for a sustainable crypto market reversal.
