Rising oil prices, bond yields, and concerns about interest rate hikes put pressure on the crypto market, causing Bitcoin to briefly fall to $82,600.
Risk appetite weakened in the cryptocurrency market, causing Bitcoin to fall below the $83,000 level. BTC traded around $82,600 during the day, losing nearly 2% in value over the last 24 hours.
The sell-off wasn’t limited to Bitcoin. Zcash fell by 7%, Dogecoin by 5%, and Solana and Hyperliquid by over 4%. Losses in Ethereum, BNB, and XRP ranged between 2% and 4%.
The pressure on the market stems more from global risks than from developments specific to the crypto sector. Brent crude oil prices approached $108 per barrel after Iran refused to soften its demands regarding the Strait of Hormuz and negotiations failed to make progress. Rising energy prices have reinforced expectations that inflation could accelerate again and that the US Federal Reserve may raise interest rates.
As the US five-year Treasury yield rose to 5.06%, Nasdaq 100 futures, heavily weighted towards technology stocks, also declined. In this environment, investors began reducing their leveraged crypto positions. It was reported that over $500 million in positions were liquidated in the market.
Profit-taking following the previous four-day rally also contributed to Bitcoin’s decline. The US PCE inflation data, job openings, and non-farm payrolls report will be closely watched for market direction. Better-than-expected data could increase pressure on interest rates, while weaker results could lessen macroeconomic pressure on Bitcoin.
