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Bitcoin it fell on Tuesday as a spike in Treasury yields weighed on risk assets in general.
The price of the major cryptocurrency was last lower by 5% at $96,529.13, according to Coin Metrics. The broader market of cryptocurrencies, as measured by the CoinDesk 20 index, down more than 6%.
Crypto sources Coinbase and MicroStrategy fell more than 7% and 10%, respectively. Bitcoin miners Maritime Properties and Basic science down about 5% each.
Bitcoin falls below $98,000
The moves followed a sudden rise in the US Treasury 10-Year Yield following data published by the Institute for Supply Management showed faster growth than expected in the US services sector in December, adding to concerns about more sustainable inflation. Rising yields tend to weigh on growth-oriented risk assets.
Bitcoin was trading above $102,000 on Monday and is expected to roughly double this year from that level. Investors hope that clearer regulation will support digital asset prices and in turn benefit stocks like Coinbase and Robinhood.
However, uncertainty about the path of Federal Reserve interest rate cuts could put obstacles in the way for crypto prices. In December, the central bank indicated that although it was cutting rates for the third time, it may make fewer rate cuts in 2025 than investors expected. Historically, rate cuts have had a positive effect on the price of bitcoin while hikes have had a negative effect.
Bitcoin is up more than 3% since the beginning of the year. He posted a 120% gain for 2024.
