Here is the reason why Bitcoin, Ethereum, XRP, and other altcoins just collapsed

Cryptocurrency prices plummeted drastically on Tuesday, erasing some of the gains made on Monday as concerns about the bond market intensified.

Bitcoin (BTC) dropped 4%, reaching an intraday low of $97,700. Similarly, Ethereum (ETH), Ripple (XRP), and Solana (SOL) fell more than 5%.

The decline aligned with a risk-averse sentiment that spread to other financial markets, particularly in stocks. The Nasdaq 100 index fell more than 1% to $19,635, while the S&P 500 decreased by 0.50%. These indices, largely dominated by technology companies, tend to be more sensitive to risk sentiment.

Popular tech stocks were also affected. NVIDIA shares fell 5.4%, wiping out more than $175 billion in market value. Tesla shares dropped 3%, while Super Micro Computer decreased by 1.5%.

The sell-off was likely driven by the rise in U.S. bond yields ahead of key economic reports, including non-farm payroll data and Federal Reserve minutes. The 10-year bond yield rose 1.7% to 4.70%, while the 30-year and 5-year yields increased to 4.61% and 4.50%, respectively.