Bitcoin Slips Below $100,000 as Economic Data Boosts Treasury Yields

- Bitcoin’s march back above $100,000 didn’t last long. The token slid the most in more than two weeks on Tuesday, joining a retreat in US stocks, as fresh economic data sent Treasury yields soaring.

Bitcoin fell the most in more than two weeks Tuesday, joining a retreat in US stocks as fresh economic data sent Treasury yields soaring.

The original cryptocurrency dropped 5% to $96,525 at 2:40 p.m. in New York after topping $100,000 on Monday for the first time since Dec. 19. Most other major tokens slid as well, with Ether down 7.5% and XRP off almost 6%.

Bitcoin extended losses Tuesday morning as equities turned lower following a two-day advance. A better-than-expected Institute for Supply Management report on US service providers included a prices-paid measure that hit the highest level since early 2023, while other data showed US job openings increased more than expected. Treasuries dropped across the curve, sending the 10-year yield to the highest level since May, after a $39 billion sale of the notes drew the highest yield since 2007.

The ISM data triggered a selloff in equities “which spilled over into crypto due to the increasing correlation between digital assets and the Nasdaq,” said Bob Wallden, head of trading at digital-assets firm Abra. The dip was “combined with profit-taking and stop-loss triggers on fresh crypto longs above $100,000,” he said.

Renewed headlines surrounding President-elect Donald Trump’s shifting stance on tariff talks has “added another layer of volatility to the market,” Wallden added, while price action in the Treasury market is helping to fuel cautious sentiment surrounding Bitcoin.

Tuesday’s turnaround in prices came after investors poured a net $987 million into spot-Bitcoin exchange-traded funds on Monday, the biggest one-day inflow since November, according to data compiled by Bloomberg. That follows some $908 million which flowed into the funds in the prior session.

Bitcoin's record-breaking run in 2024 ran out of steam in late December as investors looked to book profits. Optimism that a pro-crypto White House under Trump will instigate a supportive regime in the US had earlier helped lift the token to an all-time high of $108,315 in December.

Bitcoin’s prospects in 2025 will hinge partly on to what extent Trump follows through on his crypto pledges, which include establishing a national stockpile of Bitcoin. Some are doubtful that the rally can be sustained. In a Jan. 6 MLIV Pulse survey that asked which winning investments of 2024 are most likely to turn into losers in 2025, 39% of respondents chose Bitcoin, giving it the largest share of the vote.