Bitcoin Prices Slip as Interest-Rate Expectations Weigh on Market

Bitcoin prices slipped to around $77,200 on Sunday, as elevated interest-rate expectations weighed on the cryptocurrency market.

The recent surge in government debt and higher bond yields has made dollar-denominated assets more appealing, which is bad news for Bitcoin. However, a longer-term portfolio argument offered some support to the outlook.

Bitcoin Suisse argued that surging AI investment has concentrated investor exposure in a relatively small group of technology companies, while rising government debt has weakened the traditional diversification benefits offered by bonds. The firm's Crypto Wealth Management Report 2026 predicted major U.S. hyperscalers will spend more than $800 billion on AI this year and over $1 trillion in 2027.

Bitcoin Suisse also presented historical modelling that showed annualised returns on a traditional portfolio rising from 6.2% without Bitcoin to 7.2% with a 1% allocation funded from bonds. A 2.5% allocation lifted returns to 8.6%. This could provide a different source of portfolio risk rather than act as a conventional safe-haven asset.