Bitcoin slid below $79,000 on Friday, hit by a market-wide sell-off that traders blamed on turbulence in the US bond market. The price dropped roughly 3% in a single session, putting the cryptocurrency at its lowest point this month.
What triggered the sell-off
The move wasn't crypto-specific. US bond yields have been climbing sharply, and that volatility spilled into equities. Bitcoin, which has increasingly traded in lockstep with stocks, followed them lower. The S&P 500 also took a hit as rising yields made riskier assets less attractive.
The sell-off accelerated after a weak auction of 10-year notes stoked concerns about demand for US debt. Traders say the same dynamic that dragged down tech stocks Thursday afternoon carried into crypto overnight.
Bitcoin's May slide
Before Friday, Bitcoin had already been under pressure this month. The drop below $79,000 marks a new low for May — a level not seen since late April. The cryptocurrency had been hovering around $82,000 earlier in the week before the bond market jitters took hold.
It's a rough stretch for a market that had been hoping for a steadier hand from macro conditions. The correlation with traditional markets, while well-documented, leaves crypto exposed to whatever rattles the bond market next.
What traders are watching
The immediate question is whether the sell-off has room to run. Bond yields are still climbing, and no one expects a sudden reversal on rate expectations. If stocks keep sliding, Bitcoin will likely follow.
On-chain data — not available in real time — won't help traders trying to time this. The action is all about macro, and that makes the next few trading sessions unpredictable. The Federal Reserve's next meeting is still weeks away, but any commentary from officials in the meantime could move yields again.
For now, $79,000 is a level to watch. If Bitcoin can't hold above it, the next support zone is a wide open range below $75,000 — a test the market isn't eager to see.
