Crypto Crash Warning! Here’s What’s Happening to Bitcoin, Ethereum, and Altcoins 💸

#BTC

96,533.16

-5.15%

ETH

3,357.12

-8.9%

XRP

2.3185

-3.73%

The crypto market plunged on Tuesday, erasing Monday’s gains as concerns over the bond market rattled investors. Here’s the scoop:

🔻 Market Crash

Bitcoin (BTC): Down 4%, hitting $97,700.

Ethereum (ETH), Ripple (XRP), Solana (SOL): Down more than 5%.

The declines reflect the risk-off sentiment that’s rocking financial markets. Major indexes like the Nasdaq 100 fell 1% to $19,635, while the S&P 500 dropped 0.50%.

📉 Tech Stocks Plunge

NVIDIA: Down 5.4%, wiping out $175 billion.

Tesla: Down 3%.

Super Microcomputer: Down 1.5%.

🚩 Bond Yields Soar

The trigger? A surge in bond yields ahead of key economic reports such as:

Nonfarm payrolls report

Federal Reserve minutes

The 10-year yield hit 4.70%, with the 30-year and 5-year yields also rising. Rising yields often signal an aggressive Fed stance, potentially weighing on riskier assets like crypto.

💼 Job Market Pressures

The Labor Department’s report showed job openings at a six-month high, fueling concerns about a tightening labor market. That keeps inflation concerns alive and could prompt the Fed to maintain its aggressive monetary policy.

📊 What’s Next? With nonfarm payrolls and Fed minutes looming, markets are bracing for more volatility. Mark Zandi, Chief Economist at Moody's, warned that rising deficits could push yields higher, prompting a shift from crypto to safer assets like money market funds.

⚡ Stay Alert

The crypto market is in the midst of a storm, and investors need to keep an eye on upcoming reports and macroeconomic shifts. Will Bitcoin and altcoins weather the storm?