The 10-year U.S. Treasury’s interest rate soared to 1.52 percent on February 25, the fastest amount in over a year.
According to Chad Steinglass, Head of Trading at CrossTower, the move sparked market-wide pressure, dragging the “GBTC premium down as low as negative 6% and it closed around negative 2% today.” The analyst sees the volatility in interest rates as a significant cause of price volatility, as the curve’s long end steepens while the US dollar is driven lower.
As equity markets weakened during the day, cryptocurrencies came under increased pressure, presumably due to a “scramble for liquidity” arising from traders “pushing up against margin calls and needing to free up cash.”
Steinglass said: “I interpret the GBTC premium collapse as a sign that either retail is dumping to free liquidity, or large fund holders like ARKW are seeing outflows, which causes them to sell GBTC along with everything else.”
According to cointelegraph.com, the 10-year treasury yield pulled back. 0582 The basis points to 1.46 on 26 of February, a drop of 3.82 percent from its peak on the previous day. As a result, the markets had a choppy day, with the big indices ending mixed.
The NASDAQ rose 0.56 percent on the day, recouping some of its gains from the 3.5 percent decline on February 25. Meanwhile, the S&P 500 and DOW ended the day in the red, down 0.48% and 1.51% respectively.
With the exception of Cardano (ADA), which climbed to third position in terms of market cap since breaking out to a new all-time high of $1.29, the majority of the top cryptocurrencies experienced substantial losses on Friday. The latest altcoin optimism seems to be tied to the forthcoming ‘Mary’ mainnet launch scheduled for March 1.
Simple Attention Token (BAT) has also fought back against the sell-off of the market to record a 6.43% increase after the launch of the forthcoming Courageous Decentralized Exchange on February 23.