Bitcoin falls to lowest since November in risk-asset sell-off

01/13/2025 20:42

(Bloomberg) -- Bitcoin slumped to an almost two-month low as investors dumped riskier assets following a sharp rise in bond yields. Most Read from BloombergA Blueprint for Better Bike LanesWhat Robotaxis Brought San FranciscoAmbitious High-Speed Rail Plans Advance in the Baltic RegionNew York, San Francisco Ranked Worst for US Traffic in City CentersThe original cryptocurrency dropped as much as 4.4% to $90,199 on Monday, its lowest since Nov. 18 and well below the peak of $108,316 it reached in

(Bloomberg) — Bitcoin (BTC-USD) slumped to an almost two-month low as investors dumped riskier assets following a sharp rise in bond yields.

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The original cryptocurrency dropped as much as 4.4% to $90,199 on Monday, its lowest since Nov. 18 and well below the peak of $108,316 it reached in December. Other cryptoassets were also in the red, with Ether down 6.6% as of 7:50 a.m. in New York.

Stronger-than-expected US jobs data on Friday prompted traders to curtail bets that the Federal Reserve may cut interest rates again any time soon, exacerbating an already choppy start to 2025.

“The start of the new year has not been easy for the crypto market,” said Alex Kuptsikevich, chief market analyst at FxPro. “Adding to the unease is the fact that last week’s upside momentum failed to develop, only attracting sellers.”

A so-called head and shoulders chart pattern may have now formed for Bitcoin, according to Piotr Matys, a senior FX analyst at InTouch Capital Markets, which indicates a trend reversal from bullish to bearish territory. Since $91,600 was viewed as a major support level, the token’s breach below that point now points to a “strong technical bearish signal for Bitcoin,” Matys said.

Bitcoin’s next low may come around the $88,000 mark if bearish sentiment wins out, Kuptsikevich added, with a quick pullback from there to around $74,000 also possible.

The debut of US exchange-traded funds tied directly to Bitcoin, along with President-elect Donald Trump’s outspoken support for the digital-assets industry, lifted the cryptocurrency to a record high last year. That optimism has waned in 2025, with some analysts suggesting that traders are waiting for certainty following Trump’s Jan. 20 inauguration.

—With assistance from Sidhartha Shukla.

(Updates prices in second paragraph, adds context from fifth paragraph)