(Bloomberg) — Bitcoin fell to its lowest level in nearly two months as investors dumped riskier assets following a sharp rise in bond yields.
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The original cryptocurrency fell 5.3% to $89,329 on Monday, its lowest level since November 18 and well below the high of $108,316 reached in December. Other cryptoassets fell even further, with Ether and Solana down as much as 10%.
Stronger-than-expected U.S. jobs data on Friday prompted traders to reduce bets that the Federal Reserve could cut interest rates again in the near future, exacerbating an already 2025 start agitated.
“The start of the new year has not been easy for the crypto market,” said Alex Kuptsikevich, chief market analyst at FxPro. “Added to the uneasiness is the fact that last week’s bullish momentum has not developed, only attracting sellers.”
The slowdown came even as MicroStrategy bought Bitcoin for the 10th consecutive week. Shares of software company-turned-self-described Bitcoin Treasury fell 3.2%.
According to Piotr Matys, senior foreign exchange analyst at InTouch Capital Markets, a so-called head and shoulders chart pattern may have formed for Bitcoin, which indicates a trend reversal from bullish to bearish territory. Since $91,600 was considered a major support level, the token’s breakout below that point now indicates a “strong bearish technical signal for Bitcoin,” Matys said.
Bitcoin’s next low could be around $88,000 if bearish sentiment prevails, Kuptsikevich added, with a quick pullback from there to around $74,000 also possible.
The debut of U.S. exchange-traded funds tied directly to Bitcoin, as well as President-elect Donald Trump’s outspoken support for the digital assets sector, propelled the cryptocurrency to an all-time high last year. This optimism has diminished in 2025, with some analysts suggesting traders are waiting for certainty after Trump’s inauguration on January 20.
–With the help of Sidhartha Shukla.
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