Bitcoin drops to $77K as bond yields jump on Trump tariff fears
- US 30-year treasury yields spike to 4.98%, highest in recent years.
- Bitcoin could face $476 million in liquidations below $74,000.
- Nearly $1 billion in short positions vulnerable above $78,000.
Bitcoin slid towards $77,000 on Friday after sharp moves in the US bond market triggered concern across risk assets.
Investors fled long-dated treasuries as 30-year yields climbed to 4.98%, marking their biggest jump in years.
The backdrop: a surprise reintroduction of global tariffs by US President Donald Trump, which rattled markets already sensitive to inflation and debt risks.
Analysts now warn of a liquidity crunch if Bitcoin drops below $74,000, where nearly $500 million worth of leveraged long positions are at risk of liquidation.
Yields hit 4.98% on tariff shock
US 30-year treasury yields jumped above 4.98% in response to Trump’s announcement of fresh tariffs, reigniting fears of rising inflation and fiscal instability.
The move represents one of the largest single-day yield increases since 2020.
The surge comes as investors price in higher government borrowing costs and a potentially more protectionist US trade stance.
The bond selloff was so sharp that some market watchers compared it to events from the early 1980s.
Jim Bianco, a well-known analyst, noted on X that the 30-year yield saw its biggest move since 1982 when interest rates were much higher.
He suggested the abrupt spike was likely caused by forced liquidations of bond holdings by large institutions rather than natural trading patterns.
Bitcoin faces $476M liquidation risk
Bitcoin, often seen as a hedge against traditional financial market turmoil, did not escape the fallout.
The world’s largest cryptocurrency fell about 2% in 24 hours, trading around $77,260 at the time of writing, with its market capitalisation down to $1.53 trillion.
Source: CoinMarketCap
Data from Coinglass shows that if Bitcoin dips below the $74,000 threshold, approximately $476 million in long positions could be liquidated, potentially triggering a cascade of margin calls.
Conversely, if Bitcoin rebounds and crosses $78,000, short sellers could be forced to cover their positions, putting an estimated $982 million at risk of liquidation.
This tug-of-war between bulls and bears has made the market particularly sensitive to external shocks, such as those from the bond market or policy announcements from major economies.
Volatility ahead for crypto markets
While volatility looms in the short term, some crypto analysts remain cautiously optimistic.
Market participants are watching the $74,000–$78,000 range closely, as either break could set off a chain reaction in crypto markets.
Ryan Lee of Bitget Research has projected that if pro-crypto conditions emerge and macroeconomic pressures ease, Bitcoin could climb to between $95,000 and $100,000 by the end of 2025.
That would once again push the global crypto market’s capitalisation beyond the $3 trillion mark.
In the meantime, the focus remains on how global investors react to the new US tariffs and whether long-dated treasuries continue to see selling pressure.
A prolonged surge in yields could mean a broader risk-off sentiment, affecting not just Bitcoin, but also equities and commodities.
Macro risks drive market pressure
With interest rates still elevated and inflation not fully under control, markets are increasingly vulnerable to policy shifts.
The recent selloff highlights how fragile investor sentiment remains, especially when major changes like tariffs re-enter the equation.
Bitcoin’s performance is now tightly linked to these macro shifts.
A move below key support could send shockwaves through decentralised finance markets and altcoins, which rely on Bitcoin’s stability to sustain bullish momentum.
At the same time, bond markets are no longer offering the safety net they once did.
As yields rise, bond prices fall, meaning even so-called safe-haven assets can trigger losses under certain economic conditions.
With Bitcoin straddling a tight technical range and treasuries under pressure, investors are navigating increasingly treacherous terrain.
The next few days could determine whether the $77,000 level holds or gives way to a larger correction.
The post Bitcoin drops to $77K as bond yields jump on Trump tariff fears appeared first on CoinJournal.
