Bitcoin Price Tumbles as Bond Yields Reach 12-Month High

Bitcoin's price plummeted to $78,600 on May 15 as bond yields surged to a 12-month high. The US 10-year Treasury yield climbed to 4.54%, its highest point since May 2025, following hotter-than-expected CPI and PPI data. This increase in yields sparked concerns of a Federal Reserve rate hike.

The rising bond yields had a ripple effect on risk markets, causing a selloff in equities as well. The Nasdaq 100 opened 1.7% lower, while the S&P 500 fell 1.2%. Crypto-linked equities were particularly hard hit, with Coinbase and Circle experiencing significant losses.

The market's reaction to the bond yield increase was not limited to cryptocurrency markets. Gold prices fell 2.5%, while oil rose 3% and crossed $100 per barrel. The Federal Reserve's expected next move is now centered around a rate hike, according to CME FedWatch.