Among the factors behind the sale is a continued surge in global interest rates, particularly in the U.S. where the 30-year bond value has surged to 4.42%, its highest level since 2011 and the largest in the world, according to Bloomberg. The 10 yr yield at 4.32 has risen to just a basis point shy of about a 15 yr high.
While bitcoin bulls have offered hope for the SEC's imminent approval of a spot bitcoin ETF, there's no guarantee that the SEC will make a decision in 2023 on any of the numerous applications in front of the agency, let alone give its approval.
Another positive catalyst might be a favorable court decision for Grayscale's Bitcoin trust GBTC in its suit against the SEC to force the SEC to approve its attempt to convert that trust into an ETF. There had been some hope a ruling could come on Tuesday, but that day has passed, and now watchers are eyeing Friday as a possibility.
Bitcoin's increased downside volatility is consistent with its previous record of putting interim tops after notable rallies in meme coin SHIB. The self-proclaimed dogecoin killer surged more than 20% in the first 12 days of the month, mostly because of optimism that a layer 2 Shibarium launch would help the cryptocurrency transform its image as a serious industry player.