- Bitcoin (BTC) briefly fell to $78,600 as Treasury yields surged and concerns grew over a renewed pickup in inflation in the US.
- The Nasdaq 100, the S&P 500 and gold prices all fell, while oil prices, especially WTI futures, extended gains and rose above $100 a barrel.
- The yield on the 10-year US Treasury and the yield on the UK 10-year government bond reached their highest level in a year and their highest level since 2008, respectively, while markets priced in about a 50%% chance of a rate increase this year.
Forecast Trend Report by Period
Bitcoin fell sharply as surging US Treasury yields and renewed inflation concerns triggered broader selling across global risk assets.
CoinDesk reported on May 15 that Bitcoin briefly dropped to $78,600.
The cryptocurrency had earlier climbed to $82,000 after the US Senate Banking Committee passed the CLARITY Act. It later reversed course and was trading near $79,000.
The selloff spread beyond crypto to US stocks and gold.
The Nasdaq 100 and S&P 500 opened down 1.7% and 1.2%, respectively. Gold prices also fell about 2.5%.
Oil prices, by contrast, extended gains, with West Texas Intermediate futures rising above $100 a barrel.
Rising energy prices and the possibility of reaccelerating inflation are fueling concerns that major central banks could resume monetary tightening.
The yield on the 10-year US Treasury rose to 4.58%, the highest level in a year.
The yield on the UK 10-year government bond climbed to 5.2%, reaching its highest level since 2008.
Meanwhile, CME FedWatch data show markets are pricing in about a 50% chance of at least one rate increase this year. The possibility of a rate cut has effectively disappeared.
Investors are now watching upcoming US inflation data, Treasury yield moves and the Federal Reserve’s policy path.
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