Nicola Economou | norphoto | Getty Images
Bitcoin They fell on Tuesday as rising Treasury yields weighed on risk assets broadly.
The price of the major cryptocurrency fell 4.8% to $97,183.80, according to Coin Metrics. The broader cryptocurrency market, as measured by CoinDesk 20 The index fell by more than 5%.
Crypto stocks Coinbase and Accurate strategy They fell by more than 7% and 9%, respectively. Bitcoin miners Mara Holding and Basic scientific Both of them fell about 5%.
Bitcoin drops below $98,000
These moves came after a sudden increase in… 10-year US Treasury bond yield Following data issued by the Institute for Supply Management Reflects faster than expected growth In the US services sector in December, raising concerns about firmer inflation. Rising yields tend to put pressure on growth-oriented risk assets.
Bitcoin traded at more than $102,000 on Monday and is widely expected to nearly double this year from that level. Investors hope that clearer regulation will support digital asset prices and thus benefit stocks like Coinbase and Robinhood.
However, uncertainty about the path of interest rate cuts by the Federal Reserve may put obstacles in the way of cryptocurrency prices. In December, the central bank indicated that although it was cutting interest rates for a third time, it may make smaller rate cuts in 2025 than investors expected. Historically, interest rate cuts have had a positive impact on the price of Bitcoin while interest rate hikes have had a negative impact.
Bitcoin has risen more than 3% since the beginning of the year. It achieved a gain of 120% for 2024.
