Bitcoin Plunges Below $83k Amid US Bond Market Selloff

A massive selloff in U.S. bond markets has spoiled sentiment towards risk assets, including cryptocurrencies. Bitcoin plummeted below $83k in the past 24 hours, with strong economic data from the U.S. and a spike in global crude oil prices renewing Fed rate hike fears.

The yield on the long-dated thirty-year bond touched a 22-year high of 5.442 percent after hot PMI data revealed an unexpected jump in manufacturing and service sector activity in the U.S. The likelihood of a quarter percentage rate hike by the Fed in October now stands above 70 percent, according to the CME FedWatch tool.

Crypto market sentiment has been heavily impacted by the massive spike in bond yields in the U.S., with long-dated thirty-year bonds spiking 0.61 percent overnight to trade at 5.435 percent.