๐ The sudden plunge in Bitcoin prices left many scratching their heads, searching for answers amidst the chaos of the market. ๐ค Despite previous positive indicators and a promising net inflow, the downward spiral seemed inexplicable, leaving investors bewildered and disheartened. ๐
Upon closer examination, one could only grasp at straws, seeking out negative points in a sea of uncertainty. ๐ Amidst the turmoil, a far-fetched explanation emerged: the sharp rise in 10-year U.S. Treasury yields may have triggered the cascade of events leading to Bitcoin's decline. ๐ผ๐ฅ
According to SoSo Value data, a significant negative correlation of -90.61% between the U.S. 10-year Treasury bond yield and Bitcoin price was observed over the past 6 months. ๐ Yesterday's abrupt surge in the 10-year Treasury bond yield to 4.3% sent shockwaves through the overall U.S. stock market, prompting a swift adjustment. ๐ As a result, Bitcoin prices tumbled by more than 5% in just 24 hours, leaving many reeling from the impact.
Furthermore, the retreat of Meme Stocks in the U.S. stock market exacerbated the situation, dragging down the entire Meme sector of the cryptocurrency market by over 12% in the same timeframe. ๐ Meanwhile, the SocialFi sector held its ground with a more modest decline of 4.58%, offering a glimmer of hope amidst the storm. โ๏ธ
As the dust settles and investors reflect on the tumultuous events of the day, one thing remains clear: the interconnectedness of global markets and the unpredictable nature of financial dynamics. ๐๐ผ In times like these, resilience and adaptability are our greatest assets, guiding us through the ever-changing landscape of investment. ๐ช๐ #CryptoStorm #StayResilient ๐ช๏ธ๐
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