On the Chain: Bitcoin falls below US$83,000 as bond yields and oil trigger crypto sell-off
Bitcoin has fallen below US$83,000 as surging US Treasury yields, stronger oil prices and a rising US dollar drive investors away from riskier assets.
The world's largest cryptocurrency was trading around US$82,802 at the latest check, down about 1.5% on the session after falling as low as US$82,783.
Bitcoin had traded as high as US$84,332 earlier in the session and was above US$86,000 only days ago, highlighting the speed of the latest reversal.
The decline follows repeated failures to break through resistance around US$86,500-US$87,000 and has pushed Bitcoin into an increasingly important support area.
Liquidations accelerate
The downturn has been amplified by forced selling across leveraged cryptocurrency positions.
Around US$394 million of crypto positions were reportedly liquidated within a single hour during the sharpest part of the decline as Bitcoin lost support around US$83,000.
Leveraged traders can be automatically forced out of positions when prices move against them, adding further selling pressure and accelerating market declines.
The move comes after Bitcoin gained more than 30% over the previous three months, leaving the market vulnerable to profit-taking after its strong September-quarter rally.
Bond yields pressure crypto
The biggest external pressure remains the global bond market.
The US 10-year Treasury yield has climbed above 5.3%, around its highest level in almost two decades, increasing the returns available from comparatively low-risk government debt.
Brent crude is also trading above US$100 a barrel, fuelling concern that higher energy costs could keep inflation elevated and prevent the Federal Reserve from easing monetary policy.
The US dollar has strengthened alongside bond yields, adding another headwind for cryptocurrencies.
Bitcoin historically tends to struggle when real yields and the dollar rise simultaneously because investors have less incentive to hold speculative assets that generate no income.
Ethereum and XRP fall harder
The weakness has spread across the cryptocurrency market, with several major altcoins suffering larger losses than Bitcoin.
Ethereum was recently trading around US$2,570, down more than 4% over 24 hours as selling accelerated across the broader market.
XRP was near US$1.42, falling around 5%, making it one of the weaker large-cap cryptocurrencies.
Solana was trading around US$116, down roughly 3%-4%, although it remains one of the stronger performers over the past month.
The heavier losses among altcoins suggest investors are reducing exposure to the more speculative parts of the market rather than simply taking profits in Bitcoin.
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