Bitcoin Struggles Under Pressure: Drops Below $98,000 As Treasury Yields Climb
Bitcoin (BTC) dropped 4.8% to $97,000 after briefly exceeding $100,000 earlier in the week. Major crypto stocks like Coinbase and MicroStrategy fell over 7% and 9%, respectively, while Bitcoin mining companies Mara Holdings and Core Scientific declined around 5%. The price drop coincided with a spike in the 10-year US Treasury yield, following ISM data indicating faster growth in the US services sector, raising inflation concerns that typically pressure risk assets like cryptocurrencies. Analysts note increasing correlations between Bitcoin and traditional equities, particularly the Nasdaq. Profit-taking and stop-loss triggers contributed to the selloff. Renewed uncertainty regarding President-elect Donald Trump's tariff discussions added to market volatility. Bitcoin's record rally in 2024 began to fade as investors cashed in profits, with skepticism about its future performance; a survey indicated 39% believe Bitcoin may become a losing investment in 2025. Analysts suggest potential support at $97,000, with a risk of dropping to $92,000 if this level fails to hold.
