Bitcoin (BTC) faced selling pressure in the week ending on April 23 as bond yields rose and U.S. dollar liquidity declined. The cryptocurrency fell 9% to $27,600, its largest single-week percentage loss since early November. The yield on the 10-year U.S. Treasury note rose by six basis points to 3.58%, while the USD Liquidity Conditions Index reached its lowest level in over a month. According to macro analysts, bitcoin and financial markets may see increased price turbulence in the near term due to the U.S. debt ceiling issue, which could be a source of short-term volatility and uncertainty in the market. While bitcoin is still seen as a risk asset, it may pick up a haven bid if the U.S. goes into default or if a deal is not reached before the deadline.

(By Omkar Godbole)