Santa Rally Hopes Fade as Bitcoin Jumps to $90K, Then Falls Even Harder
Bitcoin briefly surged to $90,000 before falling to around $85,000, causing a shift in market sentiment. On the Myriad prediction market, confidence that Bitcoin will reach $100,000 before dropping to $69,000 fell from 69% to 57%, with less than a 4% chance of a "Santa rally." Bitcoin traded at $85,921 after a 2% daily drop, with $155 million in derivatives liquidated as BTC dropped to $85,373. Other major assets, like Ethereum, also declined; ETH fell 4% in one day to $2,824 and is down 16% over the week. Two consecutive days of Bitcoin ETF outflows totaled $634 million. Market volatility followed the release of U.S. jobs data showing increased unemployment. Traders are anticipating a Bank of Japan rate hike, which could end the yen carry trade and reduce risk asset liquidity. Bitwise CIO Matt Hougan believes the rate hike is already priced in, though the headline could spark some short-term downward pressure.
