Bitcoin (BTC) has fallen as low as $77,000 U.S. as rising crude oil prices and Treasury yields pressure risk assets.
The U.S. 30-year Treasury yield has risen to 5.13%, its highest level since 2007 as traders put the odds of no interest rate cut in June at 98% and 94% for July.
The 10-year Treasury yield is at a 12-month high of 4.59% as markets assess the Iran war, rising crude oil prices, and the prospect of zero interest rate relief this year.
Higher bond yields and interest rates increase the opportunity cost of holding non-yielding assets such as Bitcoin and tend to weigh on speculative assets.
As Treasury yields move higher, so too are crude oil prices. Brent crude oil, the international standard, is currently trading just under $110 U.S. per barrel.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at $105 U.S. a barrel. Higher oil prices are pushing inflation up and putting pressure on consumers, say analysts.
In addition to Bitcoin, the broader cryptocurrency market is also falling alongside stocks. Ethereum (ETH), Solana (SOL) and XRP (XRP) are each down more than 1% on May 18.
Analysts say the challenge for cryptocurrencies is to see if they can stabilize even as inflation rises and interest rates remain higher for longer.
Bitcoin is down nearly 40% from an all-time high of $126,000 U.S. reached last October.
