Cryptocurrency is crashing again! Bitcoin plunges by 7%, falling below $26,000 for the first time in two months.

GMTEight Source, early this morning, cryptocurrency experienced a short-term plunge. Bitcoin fell by $1,400, reaching a low of $25,275 per coin, with a daily decline of 7%. Bitcoin's price dropped below $26,000 for the first time in two months due to the prevailing risk aversion in the cryptocurrency market, coupled with global government bond yields reaching their highest level in about 15 years. "Considering what's happening in the bond market, Bitcoin's price is vulnerable to a downturn," said Edward Moya, a senior market analyst at Oanda. This recent decline has almost wiped out most of the gains achieved after BlackRock unexpectedly applied for a Bitcoin ETF on June 15th. After soaring 72% in the first quarter, Bitcoin has fallen by about 9% since the end of March. Last year, amid a series of industry scandals and bankruptcies, Bitcoin plummeted by 64%. Michael Safai, a partner at quantitative trading firm Dexterity Capital, stated, "There isn't enough exciting news in the cryptocurrency field to excite people. Instead, rising interest rates and diminished risk appetite are driving non-cryptocurrency traders to seek safer assets." Other cryptocurrencies experienced even larger declines, with Ethereum plunging nearly $200, with a daily decline of 10% at one point, reaching a low of $1,538 per coin. Cardano and Solana tokens also erased earlier gains. As global bond yields rise, resilient economic data challenges the view that central bank interest rates have peaked. Higher interest rates usually lower the attractiveness of alternative investments like cryptocurrencies. Prior to Bitcoin's decline, the cryptocurrency had been experiencing narrow fluctuations for months. According to data compiled by Bloomberg, the indicator measuring Bitcoin price volatility had been declining, with a 90-day volatility this week reaching its lowest level since 2016. Shiliang Tang, Chief Investment Officer at cryptocurrency investment firm LedgerPrime, said, "Earlier this week, people were optimistic that the decision on the Grayscale Bitcoin ETF would be announced this week, but there has been no result." "In addition, the traditional market has shown weakness this week, with the S&P Index and tech stocks being sold off, the 10-year US Treasury yield reaching highs, and the US dollar attracting buying interest, all of which are unfavorable for risk assets."