BTC drops below $79K on rising bond yields, inflation fears

Bitcoin fell to as low as $78,600 amid a surge in U.S. Treasury yields and renewed concerns about inflation, CoinDesk reported. The outlet noted that while BTC had climbed to $82,000 on May 13 after the U.S. Senate Banking Committee passed the CLARITY Act, it has since reversed course to trade around $79,000. This downturn has affected not only crypto but also U.S. stocks and gold, with the Nasdaq 100 and S&P 500 opening down 1.7% and 1.2%, respectively, and gold prices falling 2.5%. In contrast, international oil prices continued to rise, with WTI futures surpassing $100 per barrel. The market analysis suggests that rising energy prices and a potential re-acceleration of inflation are fueling concerns that major central banks may resume monetary tightening. The U.S. 10-year Treasury yield rose to 4.58%, a one-year high, while the UK 10-year gilt yield surged to 5.2%, its highest level since 2008. Meanwhile, according to the CME FedWatch Tool, the market is now pricing in a roughly 50% chance of at least one more interest rate hike this year, with the possibility of a rate cut having virtually disappeared.