The financial markets experienced a downturn on Wednesday as the yield on 10-year US Treasury bonds surged to 4.64%, causing unease among investors already concerned about the prospects of interest rate cuts in 2024. Bitcoin, which had been on a bullish trend, stalled at $68,860 in early trading and fell to a daily low of $67,100 after the US stock market closed. At the time of writing, Bitcoin was trading at $67,501, a 24-hour drop of 1.52%.

Analysts at Secure Digital Markets stated that Bitcoin continues to pull back to the 20-day moving average near $66,500 as expected. The support range of $65,000 - $66,000 remains strong. However, they expect risk assets to remain under pressure as long as the dollar index and 10-year yield continue to rise.

Despite the temporary setback, the overall market value of cryptocurrencies remains high at $2.53 trillion, with Bitcoin's market share at 52.6%. In the US stock market, the rise in US Treasury yields continues to put pressure on the broader market, with the S&P 500, Dow Jones, and Nasdaq indices all closing lower on Wednesday.

Data from Glassnode shows that long-term Bitcoin holders (LTH) have begun to accumulate coins again since December 2023, after several months of selling. Analysts pointed out that the spending pressure of long-term holders has significantly weakened in the past week, and investors have returned to the accumulation mode. This indicates that volatility is a necessary condition for triggering a new round of selling.

It's worth noting that Glassnode observed that the price trend of Bitcoin in the past three months has been more moderate than in previous bull market cycles. In the past three months, Bitcoin's weekly, monthly, and quarterly gains have exceeded 3.3%, 7.4%, and 25.6% respectively, while in the past 90 days, only 5 days' gains have exceeded 3.3%, 7.4%, and 25.6%.

Despite most analysts expecting Bitcoin's consolidation to continue in the short term, a survey on social media Twitter shows that calls for a bullish breakout rebound are becoming more frequent as the market begins to enter the golden period after Bitcoin halving (historically, Bitcoin prices have always been on an upward trend).

In conclusion, while Bitcoin faces a temporary setback due to the surge in yields on 10-year US Treasury bonds, long-term holders continue to accumulate coins, indicating their confidence in the long-term potential of the cryptocurrency. As the market enters the golden period after Bitcoin halving, the stage is set for a potential bullish breakout rebound.