Bitcoin dips to $95K after Christmas rally stalls

Bitcoin (CRYPTO:BTC) experienced a significant pullback after a brief surge during the Christmas holiday, retreating to approximately $95,300 as of Thursday.  

The cryptocurrency had nearly reclaimed the $100,000 mark, peaking just above $99,800 before declining sharply as Asian markets opened.  

This reversal came after Bitcoin had fallen below $93,000 prior to the holiday festivities.  

The broader cryptocurrency market mirrored this trend, with the CoinDesk 20 Index showing a decline of 4.2%, impacting major cryptocurrencies such as Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), and XRP (CRYPTO:XRP), which recorded losses between 4% and 7%.  

Despite these recent declines, Bitcoin has more than doubled its value year-to-date.  

Market analysts suggest that rising interest rates may be contributing to the current headwinds facing Bitcoin's price.  

The yield on the 10-year Treasury bond has increased to 4.63%, nearing its highest level for 2024, reflecting a nearly 100 basis point rise since the Federal Reserve cut short-term rates by 50 basis points in September.  

Jim Bianco, a macro researcher, noted that the rapid increase in long-term rates following a Fed rate cut is unusual.  

"The bond market will keep selling (higher yields) the more the Fed talks about rate cuts in 2025," he stated, indicating potential challenges for cryptocurrencies if this trend continues.

As trading volumes remain low, market participants are closely monitoring these developments, which could influence Bitcoin's trajectory in the coming weeks.  

With the holiday season typically associated with increased trading activity, many investors are now assessing whether Bitcoin can regain its upward momentum or if further declines are imminent.

At the time of reporting, the Bitcoin price was $96,056.43.