Bitcoin Sinks Below $79,000 Amid Bond Yield Surge

Bitcoin's price dropped significantly on May 15 due to the rapid rise of bond yields. The surge in yields, particularly for the US Treasury 10-year note, reached its highest level since May 2025, causing a ripple effect across risk markets.

The sudden increase in yields was triggered by hotter-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) data. This led to heightened expectations of a Federal Reserve rate hike, with the CME FedWatch tool indicating more than 44% probability of a rate increase by December.

Crypto-linked equities were severely impacted, with Coinbase, Circle, and Strategy experiencing significant declines. Bitcoin miners MARA Holdings and Hut 8 also suffered losses of around 7%, while Cipher Mining fell nearly 9%. Gold prices dropped 2.5% in response to the rising yields.