The weak US Treasury auction may exacerbate market fluctuations, and if BTC falls below $103,500, it could trigger $1.33 billion in liquidations.

On June 9, the U.S. Treasury will hold multiple Treasury auctions this week. The recent weakness in demand for long-term U.S. Treasuries is mainly due to the expansion of the budget deficit, higher interest payments, and political uncertainty over “Trump 2.0”. This could further push up the term premium, leading to a spike in long-end yields. If the results of this auction are weak (low bid multiples and high tail differences), it may trigger a simultaneous decline in global stocks and bonds, and the volatility of the crypto market will also intensify.

Analysts suggest:

If the long-end U.S. Treasury yield reaches a new high due to poor auction results, market risk appetite will significantly worsen, negatively impacting risk assets, especially the crypto market. BTC’s main pressure is at the critical support of $106,500, with key support at $104,000-$103,500. If it falls below $103,500, the liquidation intensity will reach $1.33 billion.

This week’s US Treasury auction and inflation data will become the trigger for market fluctuations. It is recommended to strictly control risk positions and observe the trends in traditional markets and the flow of US dollars.