Bitcoin Faces Selling Pressure Amid Market Trends

Bitcoin has recently experienced significant selling pressure, aligning closely with the U.S. small-cap stock index, indicating it is still perceived as a 'risk asset' rather than a safe haven. According to Odaily, the perpetual contract funding rate for Bitcoin has turned negative, suggesting a lack of demand for leveraged long positions, with traders remaining cautious about short-term gains. However, in the medium term, the large-scale outflow of funds from the fixed income market could benefit Bitcoin. As the 10-year Treasury yields in the U.S. and Europe reach multi-year highs, investors are gradually withdrawing from the bond market, potentially redirecting some liquidity towards risk assets, including Bitcoin.