$BTC 😱🫣🤯

The main cryptocurrencies are collapsing, and this could be the reason.

When market conditions seemed to indicate a solid recovery, the main cryptocurrencies entered a bearish trend again. This Tuesday, the price of Bitcoin plummeted nearly 5% from $102K to $97K per coin at the time of writing this note.

So far, economic data seems to be responsible for this decline, considering that stocks are also retreating.

The rise in 10-year Treasury yields generated panic among some sectors.

According to experts consulted by Bloomberg, this could translate into a renewal of recession fears in the U.S. economy. "The rise in yields is not necessarily a problem for stocks, unless, of course, the economy starts to decline.

In that case, everything begins to collapse," explains Kenny Polcari of SlateStone Wealth.

Upon learning of this change in the Treasury curve, stocks and cryptocurrencies began to decline rapidly.

In this last sector, not only did the main cryptocurrencies fall again, but also tokens from all sectors, including memecoins.

It is noteworthy that if inflation increases again, this rise in bond yields could take on alarming characteristics.

Cryptocurrencies at a crucial moment

In approximately two weeks, the presidential inauguration of Donald Trump will take place in the United States.

During the last few days, investors were excited about the possibility of an uninterrupted rally, at least until January 20. However, the data from this Tuesday came to cool spirits suddenly.

The recently published ISM services report was the highest since early 2023.

This supports the warnings from the Federal Reserve that the pace of interest rate cuts will likely slow in 2025. #BTC☀