Crypto Market Slumps on Rising Bond Yields and Profit-Taking

The cryptocurrency market is experiencing a downturn today, with Bitcoin and most altcoins trading in the red. The price of Bitcoin has dropped to $83,830 from its earlier high of $87,000 this week, while Ethereum has fallen to $2,670.

The main reason behind this crash is the rising bond yields in the US and other countries. The 10-year yield has jumped to 5.1% on Wednesday, with the 2-year yield reaching 4.90% and the 30-year surge hitting 5.4%. This uptrend is being driven by the increasing crude oil price, which has led to higher gasoline and diesel prices.

Higher energy prices typically lead to inflation, making it more likely that the Federal Reserve will intervene with further rate hikes. In fact, the Fed has already hiked rates by 0.25%, and market participants expect another increase later this year. Historically, Bitcoin and other altcoins tend to underperform during periods of rising interest rates.

The retreat in cryptocurrency prices is also partly due to profit-taking after a recent surge. The top laggards today were among the biggest winners earlier this week, with Arbitrum, Uniswap, and Pepe experiencing significant price drops.