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Crypto Market Bleeds 4.3% as Bond Yields Spike to Multi-Month Highs

Published by
Vignesh S G

Global markets are shaking, and all eyes are on the U.S. after President Donald Trump launched what many are calling an “Economic Nuclear War” by introducing a bold new tariff plan. The impact has been immediate and intense—markets across the globe are flashing red, with only China holding steady.

The S&P 500 is down 1.57%, while the EURO STOXX 50 has dropped 3.16%. In Asia, Japan’s Nikkei 225 is down 3.93%, India’s NIFTY 50 has slipped 0.59%, and Australia’s ASX 200 is down 1.80%. As fear spreads, investors are moving to safer assets like U.S. government bonds, driving up yields.

But that’s not the full story.

Let’s break it down.

Bond Yields Surge as Investors Flee Risk

At the beginning of April, the yield on 30-year U.S. government bonds was at 4.581%. On April 4, it briefly dropped to 4.331%, before rising again to its current level of 4.806%. Between April 7 and April 9, it jumped from 4.343% to 4.841%.

Yields on other bonds followed a similar path. The 20-year bond yield rose from 4.367% to 4.897%, the 10-year from 3.897% to 4.352%, and the 5-year from 3.570% to 3.944%.

However, as of today, most yields have dipped slightly. The 30-year yield has dropped to 4.805%, the 20-year to 4.845%, and the 10-year to 4.335%. Interestingly, the 5-year yield continues to climb, now sitting at 3.975%.

Some analysts believe it’s still too early to say whether these shifts mark a turning point in the bond market. But the recent movements suggest investors are watching closely as the situation unfolds.

Crypto Takes a Hit Amid Market Turmoil

The crypto market hasn’t been spared. In the past 24 hours alone, it has dropped by 4.3%, with nearly all major cryptocurrencies turning bearish.

Bitcoin is down by 2.2%, Ethereum by 5.6%, XRP by 2.5%, BNB by 0.1%, Solana by 0.9%, TRON by 2.3%, and Dogecoin by 3.6%.

At the start of April, Bitcoin was priced at $82,556.42. On April 2, it fell from $85,165 to $82,525. Then, on April 4—when 30-year bond yields hit their monthly low—Bitcoin rebounded to $83,860. But since April 5, it has dropped more than 7.94%.

Despite recent losses, Bitcoin is showing a slight recovery today. Its price has moved up from $76,344 to $77,296—a small but notable gain that could point to early signs of stabilization.

Will Bonds or Bitcoin Win the Flight to Safety?

Rising bond yields usually reflect growing uncertainty in the economy, pushing investors toward low-risk assets like government securities. This “risk-off” mood tends to hurt high-volatility assets such as cryptocurrencies.

However, if bond yields continue to ease—as seen today—it could reduce the pressure on the crypto market. That shift may allow digital assets to regain some momentum in the near future.

When safety starts looking risky and volatility feels familiar, you know we’re not in a normal market anymore.

FAQs

Why are global markets falling after the US tariff plan?

Markets are reacting to uncertainty caused by US tariffs, sparking global sell-offs and a shift to safer assets like bonds.

Is the Bitcoin market expected to recover soon?

Despite a recent dip, slight bullish signals today hint at a potential short-term rebound in Bitcoin.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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