#ETH This is why BTC, ETH, XRP, and other altcoins suddenly experienced a Gran fall

Cryptocurrency prices sharply fell on Tuesday, erasing some gains from Monday, due to growing concerns in the bond market.
BTC (BTC) has fallen by 4%, reaching a minimum of $97,700 in the day. Similarly, Ethereum (ETH), XRP (XRP), and Solana (SOL) have fallen by more than 5%.
The fall remains in line with the sentiment of refuge, which extends to other financial markets, especially the stock market. The Nasdaq 100 index fell more than 1%, to 19,635 dollars, while the S&P 500 index fell 0.50%. These indices are mainly dominated by technology companies, which are usually more susceptible to the influence of risk sentiment.
The shares of leading technology companies were also affected. Nvidia's shares fell by 5.4%, with a market value loss of more than 1750 billion dollars. Tesla's shares fell by 3%, while AMD's fell by 1.5%.
The sale may have been driven by upcoming important economic data (including non-farm payroll data and the Federal Reserve meeting minutes) and the rise in U.S. Treasury bond yields. The yield on 10-year Treasury bonds has risen 1.7% to 4.70%, while yields on 30-year and 5-year bonds have risen to 4.61% and 4.50% respectively.
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The increase in bond yields generally indicates that the Federal Reserve is expected to be more aggressive. At the December meeting, the Fed hinted that it would raise rates twice in 2025, fewer times than previously expected. The minutes of that meeting will be released on Wednesday, January 8, revealing more about the Fed's discussions.
The Department of Labor report shows that, driven by the service sector, job vacancies have increased to their highest level in six months, putting additional pressure on Bitcoin and other cryptocurrencies.
The report will be released ahead of the official non-farm employment data and is expected to be published on Friday. A better-than-expected employment report could strengthen the hawkish stance of the Federal Reserve, as labor shortages continue to increase inflationary pressure.
Some analysts believe that the increase in bond yields could cause the fall of BTC, altcoins, and other assets. Moody's chief economist, Mark Zandi, warned in a recent memorandum that the increase in the deficit under the leadership of Donald Trump could raise interest rates. This would cause a flow of funds from risk assets such as cryptocurrencies to money market funds.
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