Crypto Market Takes a Hit as Bond Yields Surge
The cryptocurrency market is reeling after a sharp increase in bond yields sparked a sell-off in riskier assets. Bitcoin, the original cryptocurrency, plummeted to a nearly two-month low, dropping as much as 4.4% to $90,199 on Monday. This marks its lowest point since November 18, a far cry from its peak of $108,316 in December.
Ether Follows Suit
Other cryptoassets are also feeling the heat, with Ether tumbling 6.6% as of 7:50 a.m. in New York. The crypto market’s struggles can be attributed to stronger-than-expected US jobs data released on Friday, which led traders to reassess their bets on the Federal Reserve’s interest rate policy.
A Challenging Start to 2025
According to Alex Kuptsikevich, chief market analyst at FxPro, “The start of the new year has not been easy for the crypto market.” The lack of upside momentum last week only served to attract sellers, adding to the market’s unease.
Technical Indicators Point to Bearish Territory
A so-called head and shoulders chart pattern may have formed for Bitcoin, indicating a trend reversal from bullish to bearish territory, according to Piotr Matys, a senior FX analyst at InTouch Capital Markets. With Bitcoin breaching the major support level of $91,600, Matys believes this signals a “strong technical bearish signal” for the cryptocurrency.
What’s Next for Bitcoin?
If bearish sentiment continues to dominate, Bitcoin’s next low could be around the $88,000 mark, Kuptsikevich predicts. A quick pullback to around $74,000 is also possible. The crypto market’s optimism, fueled by the debut of US exchange-traded funds tied directly to Bitcoin and President-elect Donald Trump’s support for the digital-assets industry, has waned in 2025. Some analysts suggest that traders are waiting for certainty following Trump’s inauguration on January 20.
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