Treasury yields climbed on strong economic data and a weak note auction, fueling a sell-off in crypto assets as Bitcoin dipped below $84,000 and Dogecoin led losses with an 8% decline.
Rising U.S. Treasury yields triggered a broad sell-off in risk assets, with Bitcoin falling below $84,000 and Dogecoin dropping 8%. The market reaction follows a strong U.S. business survey and a weak five-year note auction, while a rebound in oil prices adds further inflationary pressure.
Risk assets are under pressure due to rising U.S. Treasury yields, which make non-yielding assets less attractive and signal tighter financial conditions.
The volatility is driven by a combination of a five-year U.S. Treasury note auction that saw weak demand, the strongest U.S. business survey in five years, and a rebound in oil prices.