Crypto Market Slumps as Bond Yields Soar

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

This decline can be attributed to the struggling bond market in the United States and other countries. The 10-year yield jumped to 5.1% on Wednesday and continues its uptrend. The 2-year yield rose to 4.90%, with the 30-year surging to 5.4%.

The rising crude oil price is driving this bond market trend, leading to higher gasoline and diesel prices. Diesel has reached a record high, while gasoline has increased by double digits since January.

As interest rates rise, Bitcoin and other altcoins tend to underperform the market. In 2022, the Fed's rate hikes led to Bitcoin dropping to about $16,000, with companies like FTX and Terra collapsing.