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.
Higher yields can reduce demand for speculative assets because government debt offers stronger returns as interest rates rise. Bitcoin and other cryptocurrencies have historically faced pressure during periods of aggressive monetary tightening.
Profit-taking also contributed to Thursday's crypto market decline. Several of the day's weakest tokens had recorded some of the strongest gains during the previous weeks.
Arbitrum dropped about 14% during the previous 24 hours and traded roughly 15% below its weekly high. Before the latest pullback, ARB had risen about 263% from its August low amid growth around Robinhood Chain.
Uniswap also fell sharply. UNI dropped 13.78% over 24 hours to around USD 9.25. The token had previously climbed approximately 240% from its August lows.
That earlier rally followed regulatory developments involving the Securities and Exchange Commission. The SEC introduced an innovation exemption linked to tokenization, which had helped support sentiment around related projects.
Worldcoin, Pepe and Dogecoin also gave back part of their earlier advances. Each had recorded strong gains from August lows before Thursday's broader market decline.
Technical conditions added another layer of pressure. Many cryptocurrencies recently entered overbought territory, with their Relative Strength Index readings moving above 70.
Also Read: Bitcoin Falls to USD 84,200 as ETF Demand Absorbs Bond Market Pressure
The selling extended beyond cryptocurrencies as higher yields pressured other financial markets. Gold and silver both retreated as rising interest rates increased competition from interest-bearing assets.
US stock futures also weakened. Futures linked to the Dow Jones Industrial Average fell by about 142 points, while S&P 500 futures dropped around 25 points.
Bitcoin's decline therefore occurred alongside a wider retreat across risk-sensitive markets. Treasury yields, inflation concerns and expectations for further Federal Reserve tightening remained central forces behind the move.
Despite Thursday's losses, Bitcoin remained higher for September after gaining earlier in the month. Investors had previously responded positively to a more favorable US regulatory environment for cryptocurrencies.
The latest decline also follows Bitcoin's move to USD 87,000 earlier this week. The retreat to around USD 83,830 shows that traders have started reducing exposure after the recent advance.
Market participants now face two possible paths described by current price action. The decline could remain temporary before buyers return, or continued weakness could develop into a broader bearish trend.