Bitcoin (BTC) had a rollercoaster ride over the Christmas holiday, with the price fluctuating between $93,000 and almost $100,000. The cryptocurrency market saw a brief rally that pushed Bitcoin above $99,800 before it quickly dropped back down to around $95,000. As of the latest update, Bitcoin is trading at $95,300, marking a 3.1% decrease in the past 24 hours.
The broader CoinDesk 20 Index also experienced a 4.2% decline, with other major cryptocurrencies like ETH, SOL, XRP, ADA, and AVAX showing losses between 4% and 7%. Despite the recent volatility, Bitcoin has still more than doubled in value since the beginning of the year.
One factor that may have contributed to the recent price movements is the increase in long-term Treasury yields. The 10-year Treasury yield rose to 4.63%, nearing its 2024 high and up nearly 100 basis points since the Federal Reserve cut short-term rates by 50 basis points in September.
Macro researcher Jim Bianco highlighted the unusual speed at which long-term rates have risen following a Fed rate cut, suggesting that continued talk of rate cuts in 2025 could push bond yields even higher. He warned that if the Fed does not change its rhetoric, bond yields could rise to a level that impacts inflation and the broader economy.
Overall, the cryptocurrency market remains volatile, with Bitcoin’s price action influenced by a combination of factors including interest rates, market sentiment, and macroeconomic trends. Investors should continue to monitor developments closely and stay informed about the latest news and analysis to make informed decisions in this fast-paced environment.