Bitcoin Sinks as Oil Prices Soar and US Borrowing Costs Reach 19-Year High

Saudi Arabia's East-West pipeline shutdown due to Houthi attacks has sent shockwaves through global markets, causing oil prices to surge and contributing to a 1.2% decline in Bitcoin's value over the past 24 hours.

The price of West Texas Intermediate crude jumped $2 in minutes, reaching $103.60 and closing at $105.83, while Brent crude ended at $108.75.

This has led to higher costs across the board, prompting lenders to demand higher returns, with the yield on the 10-year U.S. Treasury note hitting a 19-year high of 5.041% on Tuesday.

Bitcoin's correlation with government bonds has grown stronger in recent months, meaning rising yields tend to negatively impact the cryptocurrency, regardless of developments within the crypto market.