The sudden drop in Bitcoin's value caught me off guard, leaving me scrambling to identify any negative aspects amidst its previous stability and positive momentum. However, the plunge left me grasping for explanations, with the only plausible one being a far-fetched connection to recent events.
An analysis suggests that yesterday's significant surge in the 10-year U.S. Treasury yields might have triggered the downturn. According to data from SoSo Value on April 2nd, there has been a notable negative correlation between the U.S. 10-year Treasury bond yield and Bitcoin prices over the past six months, reaching -90.61%. Yesterday, as the U.S. 10-year Treasury bond yield spiked to 4.3%, it prompted an adjustment in the overall U.S. stock market, resulting in Bitcoin's price plummeting by over 5% within 24 hours. Concurrently, Meme Stocks in the U.S. also experienced a sharp pullback, with the cryptocurrency Meme sector witnessing a decline of more than 12% in the same timeframe, leading the overall downturn in the crypto market. Conversely, the SocialFi sector only saw a 4.58% decrease within the same 24-hour period.
