According to a recent report from CoinDesk, bitcoin (BTC) appeared to be on track to reach the $100,000 mark after falling below $93,000 just before Christmas. However, the rally was short-lived as it quickly declined to around $95,000 as Asia opened for business on Thursday morning. At the time of writing, bitcoin was trading at $95,300, down 3.1% in the past 24 hours. The broader CoinDesk 20 Index also saw a 4.2% decrease, with popular cryptocurrencies such as ETH, SOL, XRP, ADA, and AVAX experiencing losses of 4%-7%.
While U.S. markets are open on Thursday, stock index futures are indicating modest early losses. Gold and oil, on the other hand, are slightly in the green. It is worth noting that the recent price movements in the crypto market have been on low volume, and bitcoin has still seen a significant increase of over 100% since the beginning of the year. However, it is possible that the recent declines may be due to the shift from lower interest rates to higher ones.
The 10-year Treasury yield has been steadily increasing and is now at 4.63%, just a few basis points away from its 2024 high. This is a significant increase of nearly 100 basis points since the Federal Reserve cut benchmark short-term rates by 50 basis points in September. According to macro researcher Jim Bianco, this swift rise in long-term rates following a Fed rate cut is almost unprecedented in modern monetary history. He also predicts that if the Fed continues to talk about rate cuts in 2025, bond yields will continue to rise until they start to cause problems, such as inflation.
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