Bitcoin price drops to $65,000 as cryptocurrencies come under pressure on the stock market

The cryptocurrency market is experiencing a downturn, This largely reflects the decline in the stock market. On Wednesday, Bitcoin saw a significant decline of over 2.5% in the last 24 hours, with the price hovering around $65,000. This decline has Hopes of breaking the $70,000 threshold, which had gained momentum just a week earlier, were dashed. The downward trend highlights the growing volatility in the crypto market and highlights the interconnectedness between cryptocurrencies and traditional financial markets.

Bitcoin's decline can be attributed to increasing pressure on technology stocks, especially Tesla (TSLA+0.22%), which is expected to release its latest earnings after the closing bell. According to FactSet estimates (FDS+0.99%). Revenue is expected to reach $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the previous quarter.

Meanwhile, the yield on the benchmark 10-year U.S. Treasury note continued to rise, reaching 4.23% – a level not seen since July. Higher bond yields traditionally put downward pressure on stock valuations. When Treasury yields rise, it suggests investors are becoming increasingly concerned about the economic outlook, leading them to favor safer investments like bonds over stocks.

Other major cryptocurrencies also suffered losses. Ether, the second largest cryptocurrency by market capitalization, has seen a decline of over 3% in the last 24 hours and is currently trading at around $2,500. Cardano fell more than 3.5%, Avalanche fell over 4.5% and the popular memecoin Shiba Inu fell about 3%.

Overall, the global market capitalization of cryptocurrencies has shrunk by 2% and now stands at $2.2 trillion. according to CoinMarketCap.