Bitcoin experienced a 4% decline, hitting an intraday low of $97,700. Similarly, Ethereum (ETH), Ripple, and Solana all saw more than 5% gains.
This slowdown reflected a broader sense of risk in financial markets, especially equities. The Nasdaq 100 fell more than 1% to $19,635, while the S&P 500 fell 0.50%. Because these indicators are heavily influenced by technology companies, they are particularly sensitive to changes in risk appetite.
Notable tech stocks were also impacted. Nvidia shares fell 5.4%, wiping out more than $175 billion in market capitalization. Tesla stock fell 3%, while Super Micro Computer fell 1.5%.
The rise in U.S. bond yields is likely due to anticipation of important economic news, including minutes from the Federal Reserve 10-year bond yield rose from 1.7% to 4.70%, the 30-year f yields increased to 4.61% and 4.50% respectively
In general, higher bond yields indicate expectations of more aggressive monetary policy from the Federal Reserve. At its December meeting, the Fed proposed two interest rate cuts in 2025 that were lower than previously expected. The minutes of that meeting, scheduled for release on Wednesday, Jan. 1, are expected to be released. will shed more light on the Fed’s proposals.
Bitcoin and other cryptocurrencies have received a new headwind following a Department of Labor report that vacancies, driven primarily by the service sector, reached six-month highs.
The report comes ahead of wage data released by non-farm government officials on Friday. A stronger-than-expected jobs report could reinforce the Fed’s hawkish outlook, as inflationary pressures are likely to continue as the labor market tightens.Some analysts warn that the rising bond yields ought to spell hassle for Bitcoin, altcoins, and different belongings. Mark Zandi, Chief Economist at Moody’s, recently recommended that the increasing deficits for the duration of Donald Trump’s administration could push yields higher, doubtlessly triggering a shift from riskier assets like cryptocurrencies to more secure money marketplace finances.
Business Journalist
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