Bitcoin’s recent surge hit a wall just shy of $110,000 on Wednesday, retreating sharply after setting a new all-time high amid turbulence in the U.S. Treasury market.
After climbing to $109,754, Bitcoin quickly pulled back roughly 3% to trade near $106,000, and was last seen hovering above $107,000, according to CoinDesk’s Bitcoin Price Index. Other cryptocurrencies like Ethereum and Solana also slipped following early gains.
Profit-taking played a role after Bitcoin’s impressive 50% rally over the past five weeks, but the trigger was a weak auction for 20-year U.S. Treasury bonds. Poor demand sent the 30-year Treasury yield surging to 5.07%, the highest in over two years, spooking risk assets broadly.
The Nasdaq dropped 1.5% and the S&P 500 fell 1.3% in quick succession after the auction results.
Josh Mandell, a veteran bond market expert turned Bitcoin analyst, described the auction failure as a “ticking time bomb” threatening financial stability.
“A missed auction means there aren’t enough buyers for government debt. Without Fed support, this could lead to bond defaults and systemic risk,” Mandell said.
Kirill Kretov from CoinPanel highlighted that lower liquidity on crypto exchanges since late 2024 has increased volatility, leaving Bitcoin vulnerable to sharp price swings.
“Bitcoin’s fundamentals remain strong, but price corrections can happen suddenly,” Kretov explained.
On-chain analyst Skew identified $110,000 as a key resistance zone, noting heavy sell orders and growing short positions on Binance futures — signaling a battleground that could determine Bitcoin’s next move.
“This level represents a significant supply cluster and liquidity hotspot,” Skew noted.
