Bitcoin experienced a significant decline on Tuesday, dropping 4.8% to $97,183.80, influenced by a rise in U.S. Treasury yields, which negatively affected risk assets. The broader cryptocurrency market, as tracked by the CoinDesk 20 index, also fell over 5%. Major crypto stocks, including Coinbase and MicroStrategy, saw decreases of more than 7% and 9%, respectively, while Bitcoin miners Mara Holdings and Core Scientific each fell about 5%. This decline followed a spike in the 10-year Treasury yield, spurred by economic data indicating unexpected growth in the U.S. services sector, raising concerns over persistent inflation. Although Bitcoin had traded above $102,000 just the day before, uncertainty regarding future Federal Reserve interest rate cuts has created hurdles for crypto assets. The central bank’s latest signals indicated fewer rate cuts than expected in 2025, impacting investor sentiment, given that historically, rate cuts have tended to boost Bitcoin prices. Despite the recent drop, Bitcoin remains up over 3% for the year and has seen a remarkable 120% gain in 2024. Investors are optimistic that clearer regulatory frameworks may support future price increases.
