Crypto Market Crashes as Bond Stress, War Talk, and Hack Fears Converge
The global cryptocurrency market cap plummeted to $2.91 trillion on Tuesday, down 2.5% from Monday's value of $3.00 trillion, according to CoinGecko data.
This significant drop is attributed to the convergence of three factors: bond stress, war headlines, and hack fears.
Bond yields have hit multi-decade highs, with the 10-year yield reaching 5.17%, its highest since June 2007. The 30-year yield also rose to 5.50% for the first time since June 2004.
The US-Iran war talks stalled after President Trump rejected Iran's proposal for a 7-day ceasefire, which would have reopened the Strait of Hormuz and restarted nuclear talks.
Meanwhile, fears of another hack lingered, with Bitget's $387.5 million hack still being laundered by Chinese illicit actors.
The selling pressure was compounded by whale sales, particularly in the HYPE token, where wallets sold a total of $21.86 million worth of tokens.