Bitcoin Falls to $30,000 Range... Nasdaq Drops 2%

Weakness as US Treasury Yield Surpasses 1.8%
Bitcoin Dead Cross Occurs

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The cryptocurrency Bitcoin price fell to the $30,000 range during the session. The Nasdaq index plunged by 2%. This is understood to be due to the U.S. Treasury yield soaring above 1.8%.

According to Coin Metrics, on the 10th (local time), Bitcoin price dropped by 6%, recording $39,771.91.

Bitcoin price was formed around $41,000 until about 9 a.m. that day but widened its decline within about 30 minutes. However, it later rebounded and is trading in the $40,700 range.

CNBC reported that Bitcoin price fell to its lowest level since September last year.

Coindesk also reported that Bitcoin has fallen 12% since the beginning of this year, causing a 'dead cross' phenomenon where the 50-day moving average crosses below the 200-day moving average.

Ethereum, the second largest cryptocurrency by market capitalization, also fell 7% during the session to $2,940 but later recovered to $3,000.

The decline in Bitcoin price on this day is interpreted as a result of risk-asset avoidance sentiment expanding as the U.S. Treasury yield soared above 1.8%. The 10-year Treasury yield was formed at 1.805% on this day.

The strong Treasury yield also weighed on the New York stock market. As of 10:10 a.m. that day, the Nasdaq index fell more than 2%, marking its fifth consecutive day of decline. The Nasdaq index, which is centered on growth stocks, faces downward pressure when Treasury yields rise.

The Dow Jones Industrial Average, which is centered on value stocks, also fell 1.1%, showing a simultaneous weakness.