Bitcoin Slips Below $77,200 Amid Elevated Interest-Rate Expectations
Bitcoin's price slipped to around $77,200 on Sunday due to elevated interest-rate expectations. The cryptocurrency has struggled to regain momentum as higher bond yields and expectations that interest rates will remain elevated increase the relative appeal of dollar-denominated assets.
A report from Bitcoin Suisse suggests that the rising government debt has weakened the traditional diversification benefits offered by bonds. The firm's Crypto Wealth Management Report 2026 states that major U.S. hyperscalers are expected to spend more than $800 billion on AI this year and over $1 trillion in 2027.
The report argued that bitcoin could provide a different source of portfolio risk rather than act as a conventional safe-haven asset. Historical modelling showed annualised returns on a traditional portfolio rising from 6.2% without bitcoin to 7.2% with a 1% BTC allocation funded from bonds, and up to 8.6% with a 2.5% allocation.