As investors assessed the risks from rising rates and the potential for more tightening by the Federal Reserve, the price of bitcoin was lower on Monday.
According to Coin Metrics, the price of Bitcoin fell about 5%. The coin dropped to its lowest level since March 21.
The 10-year Treasury yield hit a three-year high overnight. When yields rise, riskier assets fall. The tech-laden index was down by more than 1% on Monday. The correlation between the two has been high in recent months.
Expectations that the U.S. Fed will tighten its monetary policy to fight inflation are weighing heavily on traditional markets.
Carey noted that the market reaction to Terraform Labs buying thousands of dollars worth of bitcoin in troves for its stable coin reserves has played out.
The token market was lower as well. According to coin metrics, ether declined by 7.2%. Over the past 24 hours, Solana, Cardano, and Algorand's token prices were all down.
The sector fell too. Aave, Compound and SushiSwap lost more than 9% in a single day.
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