Bitcoin dipped below $90,000 on Thursday as the early-January rebound cooled, even as global government bonds rallied and bets on Federal Reserve rate cuts grew.
The cryptocurrency fell roughly 2% over 24 hours but remains up more than 3% for the week. Ether lost about 3% on the day while holding a seven-day gain of around 6%, according to CoinGecko. U.S.-listed spot bitcoin ETFs saw $486 million in outflows, marking their second consecutive day of losses this year.
Among altcoins, XRP led declines, sliding roughly 4.5% over 24 hours, though it remains up 17% for the week. Dogecoin posted the strongest weekly performance, gaining more than 22%.
Traditional markets tracked a similar trend. U.S. Treasuries extended gains across the curve, pushing the 10-year yield down to roughly 4.14% after weak economic data reinforced expectations that the Fed may cut rates later this year. ADP Research reported a December increase of 41,000 private-sector payrolls, below the Bloomberg survey median of 50,000, prompting some rate markets to briefly price in at least two additional quarter-point cuts by year-end.
Asian bond markets mirrored the trend, with Australian and New Zealand debt rising and Japanese bond futures holding gains after a 30-year auction. Analysts note that expectations of easier monetary policy tend to support risk assets like crypto, especially when investors seek alternatives to cash.
“Macroeconomics is a crucial factor,” said analysts at B2BINPAY, highlighting that crypto remains highly sensitive to bitcoin-led sentiment.
The early-year rally also reflects a post-holiday reset. December was rangebound as desks reduced risk and liquidity thinned. Now, multiple tailwinds — including improved liquidity, steadier policy outlooks, and markets still below cycle highs — are supporting price.
Still, Thursday’s pullback shows crypto is not immune to volatility. Bitcoin dominance and shifts in investor flows could test the durability of the rebound in the coming sessions.
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