Bond Yields Send Crypto Market into Free Fall as Bitcoin Plunges Below $84,000
The cryptocurrency market is experiencing a downturn, with Bitcoin and most altcoins in the red. This decline comes after Bitcoin hit $87,000 earlier this week and has since slumped to $83,830. Ethereum has also fallen to $2,670. Top altcoins like Arbitrum, Pepe, Uniswap, and Official Trump have been among the biggest laggards, falling by over 11%.
The main driver of this market crash is the struggling bond market in the United States and other countries. The ten-year yield has jumped to 5.1%, while the 2-year yield rose to 4.90%. The 30-year yield surged to 5.4%. These rising yields are being driven by increasing crude oil prices, which have led to higher gasoline and diesel prices.
As a result, there is a likelihood that the Federal Reserve will intervene with continued rate hikes. Bitcoin and other altcoins typically underperform when interest rates are in an uptrend. This was evident in 2022, when the Fed hiked rates and Bitcoin dropped to around $16,000.