Bitcoin Price Dips Below $98000 Amid Pressure from Treasury Yields
Bitcoin took a dip on Tuesday as Treasury yields put pressure on risk assets across the board. The price of Bitcoin dropped by 4.8% to $97,183.80, as reported by Coin Metrics. The broader market of cryptocurrencies, as shown by the CoinDesk 20 index, also fell more than 5%.
Not surprisingly, crypto stocks like Coinbase and MicroStrategy saw declines of more than 7% and 9% respectively, while Bitcoin miners Mara Holdings and Core Scientific were down around 5% each.
This drop came after a sudden spike in the 10-year U.S. Treasury yield following data showing faster-than-expected growth in the U.S. services sector in December, which raised concerns about inflation. It’s a classic case of rising yields putting pressure on growth-oriented risk assets.
Although Bitcoin was trading above $102,000 just a day before, the path ahead may not be entirely smooth. Uncertainty surrounding the Federal Reserve interest rate cuts could cause some bumps along the way for crypto prices. The Fed hinted that it might cut rates fewer times in 2025 than expected, which historically has had a negative impact on Bitcoin prices.
One positive note is that Bitcoin is up by more than 3% since the start of the year and posted a 120% gain in 2024. Overall, the outlook remains hopeful, with investors anticipating clearer regulations that could support digital asset prices and benefit stocks like Coinbase and Robinhood in the long run.
