Bitcoin Falls Below $78K as US Bond Yield Spike Triggers 3% Market Drop

Bitcoin dropped under $78,000 after a broad sell off in global risk assets, with rising US Treasury yields putting pressure on both crypto and stocks. The move marked about a 3% daily decline and pushed BTC close to its weakest levels seen in May.

US 10-year yield jump drives market fear

The main trigger behind the sell-off was a sharp rise in US 10-year Treasury yields, which moved above 4.55% for the first time since May 2025. Traders linked this to renewed stress in the bond market and warned that higher yields are pulling money out of risk assets.

Market commentary also noted that yields have climbed above levels that previously triggered major policy reactions, including last year’s pause on US-China tariff actions when bond markets came under pressure.

Stocks also turn lower after record highs

Equities followed the same direction. The S&P 500, which recently hit all-time highs, gave back gains during the same session as risk sentiment weakened across markets.

Bitcoin support levels under pressure

Traders say Bitcoin losing momentum above $80,000 was a key warning sign. Some expect BTC to test lower support in the mid-$70,000 range if selling continues, while others expect sideways movement between support and resistance until a clear breakout or breakdown appears.

Overall, markets are now reacting to bond yield pressure, with Bitcoin once again moving closely with traditional risk assets.