“For investors, the short-term outlook calls for caution, while a further drop to $70,000–$75,000 for Bitcoin is possible if trade tensions escalate,” one trader said.
The sharp rise in Treasury yields likely stems from the unwinding of basis trades and could trigger liquidity crisis, deepening the sell-off in risk assets.
The total value of borrowings on large DeFi platforms like Aave and Morpho has sharply dropped from the mid-December peak, as investors scrambled to reduce outstanding debt or got liquidated.
