Crypto Market Correction: Bitcoin Plunges Amid Rising Oil Prices and Inflation Concerns
The crypto market is experiencing another wave of selling pressure, with Bitcoin plummeting to $77,225 after failing to sustain its recent recovery. The price drop comes as investors grow more cautious across global financial markets.
The broader crypto market shows signs of weakness, with a total market capitalization decline of 1.55% over the past 24 hours to $2.62 trillion. Trading activity has picked up, with a 24-hour volume of approximately $84.3 billion, an increase of about 3.1%. Bitcoin remains the market's anchor, with BTC dominance at 59%, but it too is under pressure.
The immediate trigger for the crypto market correction appears to be the broader financial markets, where rising oil prices, inflation concerns, and changing FED expectations are pushing investors toward a more defensive stance. The probability of a 25-basis-point FED rate hike next week has risen to around 71%, up from 61% in previous sessions.
Additionally, US Treasury yields have surged as investors reassess the outlook for inflation and interest rates, with the 10-year yield reaching 4.979% just below an important 5% level. A stronger dollar can also tighten global financial conditions and weigh on risk assets.