Bitcoin briefly touched record highs before swiftly pulling back, as a spike in interest rates dampened risk sentiment across financial markets. The leading cryptocurrency had rallied strongly in recent weeks, driven by optimism around institutional adoption and macroeconomic factors. However, a sudden shift in rate expectations triggered a broader risk-off mood, impacting digital assets alongside stocks and tech shares.
Analysts note that as yields climb, high-risk assets like Bitcoin often face selling pressure, with investors seeking safety in more stable returns. Despite the short-term retreat, market sentiment remains broadly positive, with many traders viewing the pullback as a healthy correction in an otherwise bullish cycle.
The market now awaits further cues from central banks and economic data, which could influence the trajectory of crypto prices in the near term.