The bond market rout deepened on Wednesday, pushing the 30-year Treasury yield to 5.730%. This surge in borrowing costs prompted investors to shed speculative assets, with ethereum and XRP facing sharper declines of 5.2% and 5.5%, respectively. Bitfinex analysts noted that the retreat was overdue, as the cryptocurrency failed to hold critical support at $84,000.

Lacie Zhang, a research analyst at Bitget Wallet, attributed the velocity of the decline to market positioning. With Bitcoin unable to sustain levels above $87,000, a buildup of leveraged long positions left the asset vulnerable. Once the price breached $84,000, a wave of forced liquidations accelerated the downward pressure. While Federal Reserve minutes released Wednesday confirmed that board members saw no immediate urgency for another rate hike in October, the news failed to stabilize digital markets. Investors remain focused on the bond market, where the CME Group’s FedWatch tool currently assigns an 81% probability that rates will remain unchanged following the next meeting.