Bitcoin (BTC) Pulls Back to $93K as Treasury Yields Spike, Options Market Stays Optimistic

The new year kicked off on a happy note with bitcoin (BTC) moving towards $100,000, putting behind the weak price of December.

Bitcoin (BTC) dropped below $93,000 on Monday morning after failing to keep gains above $100,000 over the weekend, a move that came amid a broader rise in U.S. Treasury yields.

The latest downturn follows a seven-day rally that saw BTC rise from lows around $80,000 last Monday.

The cryptocurrency was last changing hands at press time around $92,800, according to CoinDesk data. BTC's seven-day rolling average price now stands at $93,343.

Relatively little stood out on the economic data front over the weekend, though traders pointed to sticky U.S. inflation as a possible driver behind the uptick in Treasury yields.

Data last week showed U.S. consumer prices rose 0.5% in December, a hotter-than-expected reading that brought the year-over-year increase to 7.0%.

The reading was the highest since June 1982, and it follows a 0.2% price increase in November. Economists surveyed by Dow Jones had expected a 0.4% month-over-month increase in December.

The seven-day rolling average price of BTC stood at press time at $92,800, down from highs around $98,000 on Monday.

The cryptocurrency dropped to lows of $80,000 earlier in January, and it's now up over 15% for the month. BTC was trading around $80,000 at the start of 2024.

Among other major cryptocurrencies, ether (ETH) was recently changing hands at press time above $3,100, up over 3% over the past 24 hours.

The second-largest cryptocurrency by market capitalization dropped to lows around $2,700 earlier in January, and it's now up over 10% for the month. ETH was trading around $3,000 at the start of 2024.