The crypto market fell sharply Thursday as rising global bond yields, higher oil prices and profit-taking pressured Bitcoin and major altcoins. Bitcoin dropped to about USD 83,830 after touching USD 87,000 earlier this week. Ethereum fell to around USD 2,670, while several leading altcoins recorded double-digit losses.

Arbitrum, Pepe, Uniswap and Official Trump ranked among the biggest laggards. Several fell more than 11% during the latest sell-off. The decline followed strong September gains across the cryptocurrency market.

Meanwhile, bond yields continued rising in the United States and other major economies. The US 10-year Treasury yield climbed above 5% and reached levels not seen since 2007.

The rise in Treasury yields has become a major source of pressure across risk assets. The 10-year yield climbed to about 5.1% Wednesday. The two-year yield rose to 4.90%, while the 30-year yield reached about 5.4%.

Stronger US purchasing managers' index data and hawkish Federal Reserve comments contributed to the bond-market move. Investors also adjusted expectations following the Federal Reserve's latest interest-rate decision.

The Fed raised rates by 25 basis points last week. Officials also maintained their commitment to returning annual inflation toward the 2% target. Market participants now expect another possible rate increase later this year.

At the same time, higher crude oil prices have added to inflation concerns. Gasoline prices have risen by double digits since January, while diesel prices have also climbed sharply. Higher fuel costs can increase pressure on consumer prices.

Similar moves appeared outside the United States. Japanese 10-year government bond yields reached their highest level in about three decades Thursday as developed-market bonds came under pressure.

Source link