Chairman of the U.S. Bitcoin Foundation: The reason for Bitcoin’s decline may be the rise in U.S. Treasury bond yields

Bitcoin had a frantic 24 hours last week, snapping back a week of losses with a slight recovery on Friday after a wave of negative headlines and rising bond yields pushed prices to the $25,000 level. The largest cryptocurrency by market capitalization fell for a sixth day in a row, shedding more than 11%, according to Dow Jones data. Much of the speculation on the cryptocurrency's drop in volatility came after Musk's Space Exploration Technologies wrote down $373 million in bitcoin late Thursday.

While Brock Pierce, chairman of the Bitcoin Foundation, said the report may have contributed to the sell-off, he also pointed to a factor that could have had a bigger impact: rising U.S. Treasury yields. He pointed out that there are a lot of other things that are said to be underlying the broader market, such as rising interest rates. Why take the risk when you sit back and watch, the government is paying high yields, but when you know the government will pay high yields, and people are switching from riskier investments to safer fund-like investment products? .