On the Chain: Bitcoin slides towards US$82,000 as risk-off mood overwhelms ETF buying

Bitcoin has extended its retreat, falling towards US$83,000 as surging bond yields and geopolitical uncertainty continue to outweigh strong institutional demand for cryptocurrency.

The world's largest digital asset was recently trading around US$83,112, down about 0.5%, after trading as low as US$82,598 and as high as US$84,239 during the session.

Bitcoin has now surrendered much of the rally that took it above US$87,000 last week and is experiencing its longest run of daily losses in almost four months.

The crypto was heading for a fifth consecutive negative session after falling roughly 3% over the preceding five trading days.

Bond yields keep pressure on Bitcoin

The latest weakness comes against a difficult backdrop for risk assets.

The US 10-year Treasury yield has been trading above 5.2%, around its highest level since 2007, as investors contend with stronger US economic data, elevated oil prices and expectations that the Federal Reserve could keep monetary policy tighter for longer.

Higher Treasury yields increase the returns available on comparatively low-risk government debt, reducing the relative appeal of Bitcoin and other non-yielding speculative assets.

Geopolitical uncertainty surrounding Iran has added another layer of risk, with renewed concern about oil supplies and inflation contributing to the broader retreat from risk assets.