Bitcoin News: Bitcoin Price Recovery Faces Headwinds as U.S. Treasury Volatility Surges to 4-Month High

Key Takeaways:The U.S. Treasury market is witnessing its highest volatility in four months, potentially slowing Bitcoin’s recovery.Analysts remain optimistic about BTC reaching $90,000 amid cooling inflation and economic uncertainty.Increased Treasury market fluctuations could limit liquidity and risk appetite across financial markets.Bitcoin’s Path to Recovery Amid Treasury Market TurbulenceBitcoin (BTC) is facing renewed resistance in its recovery efforts as the U.S. Treasury market experiences its highest volatility in four months. While cooling inflation has strengthened expectations for Federal Reserve interest rate cuts, heightened Treasury fluctuations could impact market sentiment and slow BTC’s ascent.The Merrill Lynch Option Volatility Estimate (MOVE) Index, which tracks expected 30-day Treasury market volatility, surged to 115—the highest level since November 2024—marking a 38% increase in three weeks, according to TradingView data. Increased Treasury market instability often results in reduced risk-taking, affecting liquidity across financial markets, including crypto.Despite these concerns, Bitcoin remains resilient, currently hovering around $82,000. Analysts at 21Shares predict BTC could push beyond $90,000, citing easing inflation and lingering recession fears as catalysts."With inflation cooling and recession fears still looming but not worsening, Bitcoin could be on the verge of its next major breakout, pushing past the stubborn sub-$90K range," said Matt Mena, Crypto Research Strategist at 21Shares.However, macroeconomic uncertainty and Treasury market turbulence may delay Bitcoin’s anticipated surge. Investors are closely watching the Federal Reserve’s next moves, with potential interest rate cuts acting as a pivotal factor in BTC’s price trajectory.As risk assets navigate heightened volatility, Bitcoin’s ability to reclaim key resistance levels will depend on broader market sentiment and liquidity conditions in the coming weeks, according to CoinDesk.