The decline occurred as continued growing bond market yields took a toll on risk assets across the board

Bitcoin slipped to around $27,400, giving up most of its gains from a short-lived rally above $28,000 at the beginning of the week as traders took profits as jitters in traditional financial markets weighed on crypto currency prices.

Bitcoin dipped to as low as $27,275 during U.S. morning hours on Tuesday, down 3.5% over the past 24 hours, as per CoinDesk data. The CoinDesk Market Index (CMI), a broad-based weighted index of hundreds of tokens, dropped 3.4%, signalling profit-taking across the board.

The decline occurred as continued growing bond market yields took a toll on risk assets across the board. The 10-year U.S. Treasury rate soared 8 bps to 4.76%, a new 16-year high early Tuesday, helping to send the S&P 500 and the Nasdaq 100 lower 1.3% and 1.6%, respectively.

The crypto hangover could be enduring as global rates continue to increase, in spite of recession signals, Mike McGlone, senior macro strategist at Bloomberg Intelligence, said Tuesday in an X (formerly Twitter) post. He observed in a report that the U.S. Fed is still on the path of tightening liquidity conditions, and a declining bitcoin price has typically preceded Fed pivots. Bitcoin may need to drop first, McGlone added.

Ether declined around 4% to $1,649, fully retracing its rise above the $1,700 mark following a dull first day trading of ether futures ETFs in the U.S.

XRP, BNB Chain’s BNB and dogecoin slipped 2%-3% during the day. Tron network’s TRX was 4% lower at one time during Asian morning hours, then steadied at nearly 8.7 cents.

Rollbit’s RLB tokens climbed 8%, continuing a multi-day run amid higher token demand and platform revenues.