Bitcoin Slumps Below $100,000 as Economic Data Push Rates Higher

New York: Bitcoin’s brief rise above $100,000 didn’t last long. It dropped over 5% on Tuesday, joining a decline in US stocks. This came after new economic data pushed Treasury yields higher.

After hitting $100,000 for the first time since December, Bitcoin fell to $96,525 by the afternoon. Other major cryptocurrencies like Ether and XRP also took a hit, with losses of 7.5% and almost 6%, respectively.

The drop in Bitcoin’s price followed a two-day stock market rally. A report from the Institute for Supply Management showed service prices at their highest since early 2023, and job openings were up more than expected. This news sent Treasury yields soaring, with the 10-year yield reaching its highest point since May.

Bob Wallden from Abra noted that the selloff in stocks spilled over into crypto, highlighting the growing connection between digital assets and the Nasdaq. He mentioned that profit-taking and stop-loss triggers contributed to the dip.

Additionally, shifting news about Donald Trump’s tariff talks added more volatility to the market. The price movements in the Treasury market are also making investors cautious about Bitcoin.

Interestingly, just before this downturn, investors had poured nearly $1 billion into Bitcoin exchange-traded funds, marking the largest one-day inflow since November.

Bitcoin’s impressive run in 2024 hit a snag in late December as investors sought to cash in on profits. Hopes that a pro-crypto administration under Trump would create a favorable environment had previously pushed Bitcoin to an all-time high of $108,315.

Looking ahead to 2025, Bitcoin’s future will depend on whether Trump follows through on his crypto promises, including a national Bitcoin stockpile. However, some experts are skeptical about sustaining the rally. A recent survey showed that 39% of respondents believe Bitcoin could be one of the biggest losers in 2025.