Bitcoin Falls Below $79,000 as Bond Market Sell-Off Intensifies
Bitcoin dropped as much as 3.4% on Friday, falling to around $78,600, its lowest level in two weeks. The decline came as a sharp global bond sell-off rattled financial markets and pushed investors away from risk-heavy assets.
Meanwhile, U.S. Treasury yields surged to their highest levels in a year, adding pressure across equities and digital assets. The U.S. 10-year Treasury yield climbed to 4.58%, marking its biggest weekly rise since April 2025. Across Europe and Asia, bond markets also faced steep losses, while major stock indexes moved lower.
Inflation and Oil Fears Shake Investor Confidence
The market turmoil accelerated after stronger-than-expected U.S. inflation data earlier this week. Consumer and producer prices both rose faster than forecasts, increasing concerns that inflation may remain stubborn for longer.
At the same time, ongoing disruption in global energy markets added to investor anxiety. WTI crude moved back above $100 as the Strait of Hormuz remained closed for an extended period following failed diplomatic talks. Fed Governor Michael Barr said Thursday that “inflation is the overwhelming risk facing the economy”.
Rate Hike Bets Grow as Risk Appetite Weakens
As inflation fears intensified, traders sharply reduced expectations for Federal Reserve rate cuts. Instead, markets increasingly began pricing in the possibility of another rate hike before the end of the year.
Consequently, stocks pulled back from recent highs, while crypto markets lost momentum. Analysts also noted that Bitcoin struggled to break above $82,000 several times, weakening its technical outlook. If selling pressure continues, the cryptocurrency could retest the $75,000 to $77,000 range.
