Onyxcoin (xcn) 
Cryptocurrency Market Falls Sharply Amid Rising Bond Yields and Hawkish Fed Sentiment
Cryptocurrency prices experienced a sharp decline on Tuesday, erasing some of the gains made on Monday. The downturn was largely driven by concerns about the bond market, which intensified ahead of key economic reports.
Bitcoin and Altcoin Prices Retreat
Bitcoin dropped by 4% to an intraday low of $97,700. Similarly, Ethereum (ETH), Ripple (XRP), and Solana (SOL) fell by over 5%. The decline was in line with a risk-off sentiment that extended across other financial markets, particularly in equities.
Equity Market Performance
The Nasdaq 100 index fell by more than 1% to $19,635, while the S&P 500 declined by 0.50%. These indices, heavily dominated by technology companies, tend to be more sensitive to risk sentiment. Popular tech stocks were also affected, with NVIDIA shares plunging by 5.4% and wiping out over $175 billion in market value.
Rising Bond Yields and Hawkish Fed Sentiment
The sell-off was likely driven by rising U.S. bond yields ahead of key economic reports, including the nonfarm payrolls data and Federal Reserve minutes. The 10-year bond yield rose by 1.7% to 4.70%, while the 30-year and 5-year yields climbed to 4.61% and 4.50%, respectively.
Rising bond yields typically signal expectations of a more hawkish stance from the Federal Reserve.
Impact of Labor Market Report
Bitcoin and other cryptocurrencies faced additional pressure after a Labor Department report showed job vacancies surged to a six-month high, driven by the services sector. This report precedes the official nonfarm payrolls data, set to be released on Friday.
Analyst Insights and Market Outlook
Some analysts believe that the soaring bond yields could crash Bitcoin, altcoins, and other assets. A stronger-than-expected jobs report could reinforce the Fed’s hawkish approach, as a tightening labor market would keep inflationary pressures elevated.
Key takeaways from the current market situation:
• Rising bond yields signal expectations of a more hawkish stance from the Federal Reserve.
• A stronger-than-expected jobs report could reinforce the Fed’s hawkish approach.
• Soaring bond yields could lead to a rotation from risky assets like crypto to money market funds.
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