Crypto Stocks Sink as Rising Bond Yields Trigger Broad Market Selloff

Bitcoin and crypto-related stocks came under heavy pressure Friday as rising government bond yields sparked a broad selloff across global financial markets. Investors moved away from riskier assets amid growing fears that persistent inflation and surging energy prices could push central banks toward tighter monetary policies.

Bitcoin (BTC) dropped to around $78,600 during the U.S. trading session, marking a sharp decline from Thursday’s high near $82,000. Although the cryptocurrency later recovered slightly above $79,000, it still remained down more than 2% over the past 24 hours. The pullback came shortly after the Senate Banking Committee advanced the Clarity Act, a major crypto market structure bill that had initially fueled optimism across the digital asset sector.

The weakness quickly spread to crypto-linked equities. Coinbase (COIN) fell nearly 6%, while Robinhood (HOOD) declined more than 3% as investors reduced exposure to digital asset businesses. Galaxy Digital (GLXY) also slid 5.4%, reflecting broader concerns about market volatility and tightening financial conditions.

Stablecoin issuer Circle (CRCL) suffered one of the steepest declines among major crypto firms, falling 7.4% after this week’s rally tied to regulatory progress surrounding the Clarity Act. Strategy (MSTR), the largest corporate holder of bitcoin, dropped 5.4%, while Ethereum-focused treasury company Bitmine (BMNR) lost almost 6%.

Bitcoin mining companies experienced even heavier losses as traders reassessed high-growth sectors tied to both cryptocurrency and artificial intelligence infrastructure. MARA Holdings (MARA) and Hut 8 (HUT) each declined around 7%, Cipher Mining (CIFR) fell nearly 9%, and Bitdeer (BTDR) plunged close to 11%.

Traditional markets also weakened sharply. The Nasdaq 100 fell 1.7%, the S&P 500 lost 1.2%, and gold prices dropped 2.5%. Meanwhile, oil prices surged above $100 per barrel, intensifying inflation concerns. The U.S. 10-year Treasury yield climbed to 4.58%, its highest level in more than a year, while UK government bond yields reached levels not seen since 2008.