US two-year Treasury yields just spiked to 4.31 percent. The sudden yield increase heavily suppressed investor appetite across global markets. And amid these tense market conditions, Shiba Inu’s dramatic U-turn pulls futures market down 25 percent, according to market data.
Traders aggressively reduced their exposure to protect their capital. The sudden withdrawal of futures activity pushed the meme coin into a 7 percent price fall. It dropped to approximately $0.0000050. Market participants locked in profits, and they exited positions entirely instead of risking the downside they were looking at.
The severe reversal arrived exactly one day after SHIB surged over 35 percent. That initial rally briefly pushed the token price to $0.0000057. South Korean traders primarily fueled the previous day’s action—they generated $1 billion in volume. For a brief moment, the surge allowed Shiba Inu to reclaim a spot in the top 25 cryptocurrencies by total market capitalization.
But that momentum vanished quickly. Traders fled once the Treasury yields exceeded the Federal Reserve’s intended target range. Even major assets couldn’t escape the downward trend. To be fair, Bitcoin hovered near a strict $64,000 support level because risk assets faced heavy pressure. A recent financial tracking report flagged the shift.
Treasury Yield Spikes Expose the Fragility of Meme Coin Rallies
Government bonds offer higher returns right now, so they’re pulling money out of crypto. Speculative assets always suffer liquidity drains first. US two-year Treasury yields hitting 4.31 percent forced the capital flight. Retail investors chased the 35 percent pump yesterday, and they found themselves exposed when macroeconomic realities shifted.
Isolated trading volume—like the South Korean surge—can’t sustain a token’s price when the Federal Reserve’s underlying metrics suppress global risk appetite. So capital simply rotates back into traditional finance to secure safer yields.