Bitcoin (BTC) continues to hover around $77,000 U.S. even as the stock market recovers from a recent selloff.
U.S. equity markets are rallying into the Memorial Day long weekend after chipmaker Nvidia (NVDA) posted strong financial results and as bond yields and oil prices move lower.
However, Bitcoin and other cryptocurrencies such as Ethereum (ETH) appear to be left behind in the current rally.
Cryptocurrency analysts say that $75,000 U.S. has emerged as a key support zone for Bitcoin and that the digital asset appears rangebound between that level and $80,000 U.S.
Those analysts also say that long-term U.S. Treasury yields and the conflict in Iran remain headwinds for risk assets such as Bitcoin.
Some commentators say that yields on U.S. Treasurys need to ease further before a rally is sparked in Bitcoin and other cryptocurrencies.
In recent weeks, U.S. Treasury yields have risen to their highest levels since 2007 before the global financial crisis.
At the same time, crude oil prices have risen to $110 U.S. a barrel, pressuring risk assets such as crypto as investors seek safety.
The next catalyst for Bitcoin may come from geopolitics should a permanent resolution between the U.S. and Iran be announced and the Strait of Hormuz reopen to commercial ships.
A meaningful de-escalation in U.S.-Iran tensions could lead to a greater drop in oil prices and inflation expectations, easing pressure on yields and giving Bitcoin room to run, say analysts.
