Bitcoin falls about 5% as investors assess global macro risks

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A Bitcoin logo inside a BitBase cryptocurrency exchange in Madrid, Spain, on Thursday, March 17, 2022.
Angel Navarrete | Bloomberg | Getty Images

The price of bitcoin was lower on Monday as investors assessed the risks from rising rates and the potential for more tightening by the Federal Reserve.

Bitcoin fell about 5% to $41,091.60, according to Coin Metrics. Earlier in the morning, the cryptocurrency hit a low of $40,935.50, its lowest level since March 21.

The decline came after the 10-year Treasury yield hit a three-year high of 2.77% overnight. Riskier assets tend to fall when yields rise. On Monday morning, futures tied to the Nasdaq 100 were down by more than 1%. Though bitcoin should trade independently of the stock market, a correlation between the two has been particularly high in recent months.

Tokens across the crypto market were lower as well. Ether declined by 7.2% along with other platform networks. Solana, Algorand and Cardano’s tokens were all down by more than 9%.

The DeFi, or decentralized finance, sector fell too. Aave, Compound and SushiSwap lost more than 9% and Maker fell 8%.

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