Polkadot's price has been under pressure today, primarily due to broader market dynamics affecting cryptocurrencies. The MOVE index, which measures expected volatility in the U.S. Treasury bond market, has been rising, leading to tighter financial conditions and risk aversion across financial markets. This has contributed to a bearish sentiment in the crypto market, with Bitcoin and other major cryptocurrencies experiencing significant declines. As a result, Polkadot, like many altcoins, has been caught in the downdraft, reflecting the overall cautious mood among investors.
Additionally, the recent economic data indicating a robust U.S. economy and persistent inflation has led to higher Treasury yields, further exacerbating the risk-off sentiment. This has resulted in a sell-off in risk assets, including cryptocurrencies. The altcoin sector, in particular, has been hit hard, with Ethereum and other DeFi coins experiencing larger losses than Bitcoin. The shift in market sentiment has been swift, with expectations for an "alt season" fading as investors reassess their positions in light of the changing economic landscape.
Polkadot's price has fallen by 4.05% today, currently trading at $6.73. It reached a high of $7.12 earlier in the day but has since declined to a low of $6.48.