Bitcoin plunges 15% as miners accumulate 820 million amid inflation fears

Bitcoin (BTC) is currently facing significant pressure due to inflation signals and economic uncertainty, which have pushed prices lower. Despite these challenges, miners have been quietly accumulating BTC, providing key support to the market. Over the past 14 days, miners have accumulated approximately $820 million worth of BTC, which has helped to stabilize the market to some extent.

The recent downturn in Bitcoin prices has been driven by renewed concerns over inflation and rising unemployment, as indicated by the latest U.S. Non-Farm Payrolls (NFP) data. The price of Bitcoin tumbled to $82,220 on March 9, marking a 15% decline from the previous week's peak of $95,000. This downturn has occurred despite the recent announcement by the U.S. administration of a Bitcoin strategic reserve, which initially fueled a price rally but has since faded as inflation fears dominate market sentiment.

Investors have become cautious, weighing the potential long-term benefits of Bitcoin's inclusion in federal reserves against the immediate economic headwinds. The White House summit addressing the crypto market also failed to provide clarity, with policymakers split on Bitcoin's role in financial markets. This uncertainty has contributed to an 11.4% Bitcoin price pullback observed over the weekend, as institutional players hold off on aggressive purchases.

As U.S. consumers enter the second week of tariff-induced price hikes, many industries are adjusting their supply chains and implementing costlier production cycles. Key consumer goods are seeing price reviews, intensifying inflation concerns. Retail investors, typically more sensitive to rising costs, are reallocating funds to cover increased expenses, leading to capital outflows from risk assets like Bitcoin. This trend is exacerbated by institutional investors shifting toward bonds and fixed-income securities, looking to front-run expected rate hikes in the coming months.

This shift has seen 10-year bond yields soar in key markets. In the U.S., the 10-year Treasury yield surged to 4.3%, marking its highest level since November 2023. Similar trends are observed in Europe, with Germany's 10-year Bund yield climbing to 2.45%, reflecting heightened inflation expectations. In Japan, the 10-year government bond yield reached 0.88%, its highest since 2013. These rising yields make bonds more attractive