Bitcoin fell below 69,000 yesterday, and a widespread sell-off began in the crypto market. The general pullback in risk assets also dragged down the crypto sector. BTC, which was trading at $71,000 at market open, rapidly declined to $69,600 during U.S. trading hours.

In the last 24 hours, Ether lost 2%, while Solana and XRP also declined by similar margins. Crypto assets closely linked to technology followed the 4% drop in software stocks. I noticed an interesting pattern: Bitcoin has been slightly rising on Mondays and falling on Tuesdays over the past three months. This time, it followed that pattern again.

Shares of Circle, a stablecoin issuer, surged over 100% in a month but fell 16% yesterday. Similarly, shares of a major crypto exchange dropped 8%. The reason behind this is a new draft regulation: crypto yield rewards based on balances will be banned.

Interest rate expectations suddenly reversed. A few weeks ago, the market was discussing cuts; now, hikes are being priced in. The Federal Reserve has about a 15% chance of raising rates at its April and June meetings. The dollar is strong, oil has risen 2%, and the flight from risk assets is intensifying, putting pressure on crypto in this environment.