Bitcoin, a representative cryptocurrency (virtual currency), has not stopped declining, making it the worst week in the past year, Bloomberg News of the United States reported on the 26th.
Bloomberg cited its own statistics, saying that Bitcoin fell by about 20% this week, the biggest drop since March last year.
Bloomberg analyzed that the recent plunge in bitcoin is occurring as investors reshape their assets due to a surge in bond yields (interest rates). Investors around the world are reducing their share of securities such as stocks and bonds as interest rates skyrocket.
The previous day’s US interest rate soared more than 1.6%, with the benchmark 10-year Treasury bond yield surged 20bp (1bp=0.01%p) intraday in one day. The 10-year interest rate has risen from 0.9% at the beginning of the year to 1.09% at the end of January and is now exceeding 1.5%. In particular, it has risen steeply this month.
Meanwhile, as of 3:30 p.m. on the 26th (Korean time), Bitcoin is recording $46,058, a drop of 8.14% from 24 hours ago in the US coin market cap.
