#ETH That's why BTC, ETH, Ethereum, XRP, and other altcoins suddenly big dump

Cryptocurrency prices fell sharply on Tuesday, erasing some of Monday's gains, as concerns in the bond market intensified.
BTC (BTC) fell by 4%, reaching a low of $97,700 in a day. Similarly, Ethereum (ETH), XRP (XRP), and Solana (SOL) dropped by more than 5%.
The decline is consistent with risk aversion, which extends to other financial markets, especially the stock market. The Nasdaq 100 index fell more than 1% to $19,635, while the S&P 500 index fell 0.50%. These indices are mainly dominated by technology companies, which are often more susceptible to risk sentiment.
Popular tech stocks are also affected. Nvidia's stock big dump5.4%, with a market value evaporating over $175 billion. Tesla's stock fell 3%, while AMD fell 1.5%.
The sell-off may be driven by the upcoming release of important economic data (including non-farm payroll data and the minutes of the Federal Reserve meeting) and the rising US Treasury yields. The 10-year Treasury yield rose by 1.7% to 4.70%, while the 30-year and 5-year yields climbed to 4.61% and 4.50% respectively.
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Rising bond yields usually indicate that people expect the Fed to be more hawkish. At the December meeting, the Fed hinted at two rate hikes in 2025, fewer than previously expected. The minutes of that meeting will be released on Wednesday, January 8, providing further insight into the Fed's discussion.
The Department of Labor report shows that driven by the service industry, job vacancies have surged to a six-month high, putting additional pressure on BTC and other cryptocurrencies.
The report is scheduled to be released on Friday ahead of the official non-farm payroll data. A stronger-than-expected employment report could reinforce the hawkish stance of the Federal Reserve, as tightening labor markets will continue to drive up inflationary pressures.
Some analysts believe that the surge in bond yields could lead to a big dump in BTC, altcoins, and other assets. Moody's chief economist Mark Zandi warned in a recent memo that rising deficits under Donald Trump's leadership could push up yields. This will lead to a flow of funds from risky assets such as crypto to money market funds.
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