Bitcoin Drops to $95,300 After Attempting to Reach $100,000
Bitcoin (BTC) aimed to retake the $100,000 mark after dropping below $93,000 before Christmas. The rally peaked just above $99,800 but fell to approximately $95,000 as Asian markets opened on Thursday morning.
As of the latest update, Bitcoin was trading at $95,300, reflecting a 3.1% decline in the past 24 hours. The broader CoinDesk 20 Index decreased by 4.2%, with cryptocurrencies like ETH, SOL, XRP, ADA, and AVAX experiencing losses between 4% and 7%.
U.S. markets opened on Thursday with stock index futures indicating modest early losses, while gold and oil showed slight gains. Recent crypto price movements occurred on low volume, despite Bitcoin more than doubling year-to-date. However, the potential impact of lower interest rates may be shifting to a negative influence.
The 10-year Treasury yield rose to 4.63%, nearing its 2024 high, which is nearly 100 basis points higher since the Federal Reserve reduced benchmark short-term rates by 50 basis points in September. Macro researcher Jim Bianco highlighted the unusual rapid increase in long-term rates following the Fed's rate cut, stating that ongoing discussions about rate cuts could lead bond yields to rise significantly, impacting inflation control efforts.