Bitcoin Price Plunges Below $78,000 Amid Rising U.S. Bond Yields

Bitcoin's price has been affected by the recent surge in U.S. bond yields, which has made fixed-income assets more attractive compared to risk assets like crypto. The U.S. 10-year Treasury yield climbed to about 4.58%, causing investors to reassess their portfolios and leading to a decline in Bitcoin's value.

The price of Bitcoin fell below $78,000 after briefly moving above $82,000 when the U.S. Senate Banking Committee advanced the Digital Asset Market Clarity Act in a 15-9 bipartisan vote. However, the rally was short-lived as investors reacted to rising bond yields and concerns that the Federal Reserve may keep policy tighter for longer.

The market pricing now shows a 60% chance of an interest rate hike rather than a cut, putting pressure on Bitcoin and other assets sensitive to liquidity conditions. Analysts warn that regulatory optimism alone is not enough to overcome macro pressure and that a deeper correction towards $63,000 could occur if sellers keep control.