Bitcoin’s rally above $100,000 ended abruptly as the cryptocurrency fell 5% on Tuesday to $96,525, marking its largest drop in over two weeks. This decline came as US stocks sold off, driven by economic data that sent Treasury yields soaring to their highest levels since 2007.
Economic data sparks selloff
The selloff was triggered by a stronger-than-expected US services report showing rising prices and high job openings. These signals of economic resilience spooked equity markets, with the impact spilling into crypto. Bitcoin’s drop was amplified by profit-taking and stop-loss triggers on fresh positions above $100,000.
ETFs and optimism fuel the backdrop
This decline follows record inflows into Bitcoin ETFs, with $987 million added on Monday. Bitcoin recently reached an all-time high of $108,315 in December, buoyed by optimism surrounding President-elect Donald Trump’s pro-crypto policies, including promises of a national Bitcoin stockpile.
Looking ahead
Bitcoin’s future in 2025 depends on whether Trump’s pro-crypto policies materialize. While the recent pullback reflects ongoing market volatility, strong investor interest in Bitcoin shows that its position as a leading cryptocurrency remains intact.
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