Friday’s selloff started with two clear triggers: a sharp move in U.S. bond yields and a cross-chain protocol exploit. As the 10-year Treasury yield pushed above 4.55%, risk assets across markets came under pressure, and crypto was no exception.
A separate shock landed when THORChain halted trading after a suspected exploit. THORChain later said one of its Asgard vaults had been compromised for about $10.7 million in protocol-owned funds. While user swaps were not initially indicated as affected, the interruption added a second layer of stress across Bitcoin-linked liquidity flows as well as assets on Ethereum, BNB Chain and Base.
But the headline weakness faded almost as fast as it emerged. Instead of a cascade, buyers stepped in, and majors like Bitcoin reversed off session lows. That intraday rebound turned what looked like an all-decliners washout into a much more resilient close. It showed there’s still risk appetite at the margin, and that the market can absorb a dual shock—macro pressure from yields and internal stress from a protocol exploit—without tipping into broader liquidation.
Even so, the rebound wasn’t universal. Supporting data pointed to SUI underperforming, failing to bounce back with the same force as Bitcoin or other large-cap tokens. That divergence highlights a market that remains selective, with buyers favoring liquidity and size. The day ended as a test rather than a breakdown—signs of resilience, but underpinned by pockets of ongoing fragility.