Bitcoin, the world’s leading cryptocurrency, has seen a sharp dip, nearing $77,000 as markets react to new tariffs by U.S. President Donald Trump. This decline also led to a selloff in U.S. treasuries, pushing 30-year yields higher and raising economic concerns.
Meanwhile, this could cause a major liquidity crisis if Bitcoin drops below $74,000; $476 million could be liquidated. If it rises above $78,000, short sellers may lose $982 million.
30-Year Treasury Yields Jump to 4.98%
The recent implementation of global tariffs under Donald Trump has created uncertainty in financial markets. As a result, 30-year U.S. treasury yields have risen above 4.98%, showing growing worries about inflation and government debt.
Historically, bonds are considered a safe haven, but the sudden spike in yields signals potential instability, leading to investor anxiety across asset classes, including Bitcoin.
Some analysts believe this selloff may have been triggered by forced liquidations from major financial players rather than a natural market movement.
Financial analyst Jim Bianco pointed out this sharp market change in an X post, comparing it to a similar bond market shift in 1982 when interest rates were much higher. He believes sudden moves like this are usually caused by large liquidations rather than normal trading.
Bitcoin’s Liquidity Crisis Looms
With Bitcoin hovering around key technical levels, traders are bracing for potential market volatility. According to data from Coinglass, if Bitcoin slips below $74,000, the market could see a significant wave of long liquidations, causing further price declines.
On the other hand, if Bitcoin breaks past $78,000, short traders could suffer nearly $1 billion in liquidations, leading to another sharp move in the market.
Long-Term Outlook: Buy The Dip!
Despite short-term uncertainty, some analysts see this dip as a buying opportunity. Ryan Lee, Chief Analyst at Bitget Research, believes that if market conditions stabilize and pro-crypto policies emerge, Bitcoin could surge to $95,000–$100,000 by late 2025, pushing the crypto market’s total value beyond $3 trillion again.
As of now, Bitcoin is trading around $77,670, reflecting a drop of 2% in the last 24 hours, with a market cap hitting $1.54 trillion.
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