Crypto Market Dives as Bond Yields Surge

The cryptocurrency market is experiencing a downturn today, with Bitcoin and most altcoins trading in the red. Bitcoin's price has dropped to $83,830 after reaching $87,000 earlier this week, while Ethereum fell to $2,670.

The main cause of the decline is attributed to rising bond yields in the US and other countries. The 10-year yield has jumped to 5.1% and continues to rise, with the 2-year yield at 4.90% and the 30-year yield surging to 5.4%. Higher energy prices are driving inflation, which may lead to further rate hikes by the Federal Reserve.

Crypto assets tend to underperform when interest rates are on the rise. In 2022, the Fed's rate hike led to a significant drop in Bitcoin's price, and experts warn of a similar trend repeating itself. Additionally, profit-taking is occurring after the recent surge in cryptocurrency prices.