Bitcoin reacts to Bessent bond comments as month-end volatility starts

Bitcoin gyrated around $78,000 at Monday's Wall Street open as US bond yields neared 20-year highs. Bitcoin rebounded after Treasury Secretary Scott Bessent hinted at further interventions in the US bond market. Bessent said he had not yet bought anything to support the 10-year and 30-year bonds. Bessent also said he was fine with yields rebounding after the announcement. The Treasury announced that it would at least double its debt buyback transactions to $4 billion from September. The 10-year yield reached 4.76%, its highest level since January 2025. The 30-year yield reached 5.269%, six basis points below its highest level since January 2007. The Kobeissi Letter said the bond market appeared to be ignoring the Treasury. Ray Dalio expressed skepticism about the Treasury's ability to control bonds under the new program. Dalio forecast a future US debt crisis and named Bitcoin and gold as potential hedges. The S&P 500 and Nasdaq Composite Index each traded around 0.4% lower amid tensions over new US-Iran strikes. Bitcoin held its 50-week exponential moving average at $77,269 as support ahead of the August monthly close. Bitcoin's month-to-date gains neared 25%, which would make this its best August performance since 2017. Rekt Capital warned of a hidden bearish divergence between Bitcoin's price and its daily relative strength index. Rekt Capital said continued lower highs in the daily RSI would contribute to mounting weakness. The daily RSI measured 70.7 on Monday and remained in overbought territory.