Crypto Market Plummets Amid Rising Treasury Yields and Geopolitical Tensions

The crypto market has experienced a significant drop in the past few hours, with a 3.4% decline in value wiping billions from its total market worth. This sudden downturn has sent shockwaves through the industry, with Bitcoin's price plummeting to a two-week low of around $66,500.

The main contributor to this decline is the rising U.S. Treasury yields, which have hit their highest level since July. As investors shift towards safer returns, risk assets like crypto are becoming less attractive, putting pressure on the market.

Geopolitical tensions in the Middle East have also played a role in creating a risk-off environment, causing traders to shy away from volatile assets like crypto. The addition of a large batch of options expiring this Friday has further increased market volatility as traders adjust their positions before settlement.

The impact of these factors is evident in the large number of liquidations that have occurred in the past 24 hours, with over $451 million worth of trades being closed out. Institutional demand for Bitcoin ETFs has also weakened, with BlackRock and other major players reporting continued outflows this week.