Bitcoin Rebounds to $95K as the Christmas Rally Comes to an End.

Interest rates, once a driving force behind rising prices in 2024, may now be acting as a drag on the market.

While much of the world paused to celebrate Christmas, Bitcoin (BTC) appeared ready to cross the $100,000 threshold after dipping below $93,000 just before the holiday. However, the rally faltered near $99,800 as Asian markets opened on Thursday morning, with BTC quickly retreating to around $95,000 within hours.

At the time of writing, Bitcoin was trading at $95,300, marking a 3.1% decline over the past 24 hours.

The CoinDesk 20 Index, which tracks a broad range of major cryptocurrencies, was down 4.2% in the same timeframe. Key assets like Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), and Avalanche (AVAX) saw losses ranging from 4% to 7%.

As U.S. markets opened Thursday, stock index futures suggested modest losses, while gold and oil posted slight gains.

Despite the recent pullback, Bitcoin remains more than double its value year-to-date. However, the driving force of lower interest rates, which has largely supported asset prices throughout 2024, might now be reversing course.

The 10-year U.S. Treasury yield climbed to 4.63% early Thursday, nearing its 2024 peak and marking an increase of nearly 100 basis points since the Federal Reserve’s 50 basis-point rate cut in September.

Macro analyst Jim Bianco highlighted the unusual nature of rising long-term yields following a rate cut, describing it as nearly unprecedented in modern financial history. “The bond market will continue to push yields higher the more the Fed emphasizes rate cuts in 2025,” Bianco explained. “If the Fed doesn’t shift its messaging, bond yields will rise until something in the system breaks—most notably inflation.”