Bitcoin and Ethereum tumble as Treasury yields and rate hike fears shake markets
Cryptocurrency markets faced a sharp downturn this week, with Bitcoin and Ethereum both dropping significantly. The decline came alongside broader financial shifts, including rising Treasury yields and growing expectations of future interest rate hikes.
Bitcoin’s price slid from around $82,000 on Thursday to below $77,000 by Sunday. The drop coincided with $1 billion in net outflows from Bitcoin spot ETFs over the week. Ethereum also fell, losing nearly 10% to settle at $2,110.
Solana, which had recently rallied close to $100, pulled back to $84. Meanwhile, Hyperliquid defied the trend, climbing 10% to $45 after announcing a new partnership with Coinbase. SpaceX also made its debut on Hyperliquid, quickly generating $40 million in trading volume. In traditional markets, the 10-year U.S. Treasury yield reached 4.6%, while the 30-year yield crossed 5% for the first time since May 2025. The odds of a rate hike in 2026 rose to 40%, adding pressure to risk assets. Elsewhere, former President Trump’s family trust disclosed crypto trades in filings, coinciding with ongoing discussions around new crypto legislation. Outside of finance, rapper Drake released three surprise albums, including a track referencing disgraced FTX founder Sam Bankman-Fried.
The week’s market movements highlight ongoing volatility in both crypto and traditional finance. With Treasury yields climbing and rate hike expectations rising, investors are watching closely for further shifts in the coming weeks.
