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Bitcoin fell on Tuesday as a rise in Treasury yields weighed on risky assets overall.
According to Coin Metrics, the price of the flagship cryptocurrency was recently 5% lower and stood at $96,529.13. Ether fell 8%, and the broader cryptocurrency market, as measured by CoinDesk 20 the index fell by almost 7%.
Cryptocurrency stocks Coinbase AND Micro-strategy decreased by over 8% and 10%, respectively. Bitcoin miners Mara Holding AND Scientific core decreased by approximately 6% each.
Bitcoin falls below $98,000
These moves followed a surge in growth Yield on 10-year US treasury bonds according to data published by the Institute of Supply Management reflected faster-than-expected growth in the US services sector in December, which increased concerns about greater inflation stickiness. Rising yields put pressure on risky growth assets.
Bitcoin's price topped $102,000 on Monday and is widely expected to rise to about double that level this year. Investors hope that clearer regulations will support digital asset prices, which in turn will benefit exchanges like Coinbase and Robinhood.
However, uncertainty about the Federal Reserve's interest rate cut path could create a bump in the road for cryptocurrency prices. In December, the central bank signaled that although it is cutting interest rates for the third time, it may cut fewer rates in 2025 than investors expected. Historically, interest rate cuts have had a positive impact on the price of bitcoin, while increases have had a negative impact.
Bitcoin is up over 3% year to date. In 2024, he saw an increase of 120%.