Cryptocurrency prices fell sharply on Tuesday, erasing some of the gains made on Monday as concerns grew about the bond market.

Bitcoin (Bitcoin) by 4%, reaching an intraday low of $97,700. Likewise, Ethereum (Ethereum), ripple(XRP), and Solana (Sol) decreased by more than 5%.

This decline is in line with the risk-off sentiment that has spread across other financial markets, especially in stocks. The Nasdaq 100 fell more than 1% to $19,635, while the S&P 500 fell 0.50%. These indices, which are largely dominated by technology companies, tend to be more sensitive to risk sentiment.

Shares of famous technology companies were also affected. NVIDIA shares fell 5.4%, resulting in a loss of more than $175 billion in market value. Tesla shares fell 3%, while Super Micro Computer shares fell 1.5%.

The selling was likely driven by a rise in US bond yields ahead of key economic reports, including nonfarm payrolls data and Federal Reserve meeting minutes. The 10-year bond yield rose 1.7% to 4.70%, while the 30-year and 5-year bond yields rose to 4.61% and 4.50%, respectively.

Rising bond yields usually indicate expectations of a more hawkish stance from the Federal Reserve. At its December meeting, the Fed hinted at two interest rate cuts in 2025, fewer than previously expected. The minutes of this meeting, scheduled for Wednesday, January 8, will provide further insight into the Fed's discussions.

Bitcoin and other cryptocurrencies faced additional pressure after a Labor Department report showed job openings rose to a six-month high, driven by the services sector.

This report precedes official non-farm payrolls data, scheduled for release on Friday. A stronger-than-expected jobs report could reinforce the Fed's hawkish approach, as a tightening labor market would keep inflationary pressures high.

Some analysts believe that higher bond yields could lead to a collapse in Bitcoin, altcoins, and other assets. In a recent note, Mark Zandi, Moody's chief economist, said: He warned of the rising deficit Under Donald Trump that could push yields higher. This, in turn, will lead to a shift from risky assets such as cryptocurrencies to money market funds.