If you've been following the crypto market, you might be asking yourself: why is the market suddenly crashing? The answer lies in a key development in the global financial landscape— a sharp increase in U.S. Treasury yields, particularly over the last decade.
Today, a report from the Institute for Supply Management (ISM) added fuel to the fire. It revealed that December’s Purchasing Managers’ Index (PMI) for the private sector rose to 54.1, significantly higher than November’s 52.1.
While this may seem like positive economic news, it has triggered inflation concerns across markets. The ripple effect didn’t stop at cryptocurrencies. U.S. equities also took a hit, further dampening investor sentiment.
The impact was particularly harsh on MicroStrategy (MSTR), the world’s largest corporate holder of Bitcoin. Its stock price plummeted by over 10%, reflecting the broader turbulence in the market.
This interconnected chain of events underscores how external economic factors, like treasury yields and inflation signals, can significantly influence the crypto market. As a crypto enthusiast, staying informed about these trends is crucial to navigating the volatility effectively.
