New York: The cryptocurrency market has experienced a sharp downturn, with a 4.3% decline over the last 24 hours, amid widespread instability in global financial markets. The sell-off comes as rising US government bond yields signal a shift toward safer investments, causing a ripple effect across various asset classes.

According to Azeri-Press News Agency, the volatility in the crypto market aligns with the global economic uncertainty fueled in part by former US President Donald Trump’s aggressive tariff policies. These tariffs have contributed to significant fluctuations in major stock indices, with the S and P 500, EURO STOXX 50, Nikkei 225, NIFTY 50, and ASX 200 all reporting negative daily performance. The only exception appears to be the Chinese market, which has shown some resilience amidst the chaos.

The flight to safety is evident as US government bond yields have surged. For instance, the 30-year bond yield has increased from 4.581% at the beginning of the month to 4.806% currently, despite a brief decline to 4.331% earlier. Similar trends are observed in the 20-year and 10-year bond yields, which have seen significant upward movements, indicating heightened demand for these securities.

In response to these market conditions, major cryptocurrencies have also taken a hit. Bitcoin, Ethereum, XRP, BNB, Solana, TRON, and Dogecoin have all experienced declines, with Ethereum seeing a substantial drop of 5.6%. Despite a slight rebound in Bitcoin’s value today, experts remain cautious about predicting a sustained trend reversal in the crypto market.

The ongoing economic uncertainty and fluctuating bond yields underscore a complex financial landscape. As investors continue to seek refuge in less volatile assets, the cryptocurrency market faces the challenge of navigating these turbulent times.