Bitcoin slipped below $90,000 on Thursday as the early-January crypto rebound cooled, even as broader market conditions remained supportive, including a rally in global government bonds and rising expectations for Federal Reserve rate cuts.
Over a 24-hour period, bitcoin fell roughly 2%, though it remains up more than 3% over the past week. Ether declined around 3% on the day, maintaining a seven-day gain of approximately 6%, according to CoinGecko. Spot bitcoin ETFs in the U.S. recorded $486 million in outflows, marking their second consecutive day of losses for the first time this year.
Among major altcoins, XRP led declines with a 4.5% drop over 24 hours, though it is still up 17% for the week. Dogecoin posted the strongest weekly gain, rising more than 22%.
Traditional markets showed similar directional moves. U.S. Treasuries extended gains across the curve, pushing the 10-year yield down to roughly 4.14%, as weak economic data reinforced expectations that the Fed may have room to cut rates later this year. ADP Research reported a December increase of 41,000 private-sector payrolls, below the Bloomberg survey median estimate of 50,000. Some rate markets briefly priced in at least two additional quarter-point cuts by year-end.
Bond markets in Asia mirrored the trend, with Australian and New Zealand debt rising and Japanese bond futures holding gains following a 30-year auction. Analysts note that expectations of looser monetary policy typically support higher-risk assets like crypto, particularly when investors seek alternatives to cash.
“Macroeconomics is a crucial factor,” said analysts at payments firm B2BINPAY, highlighting that crypto remains highly sensitive to bitcoin-led sentiment.
The timing also coincides with a post-holiday reset. December’s markets were largely rangebound as desks pared risk into year-end and liquidity thinned. According to B2BINPAY, much of last month was spent sideways, with traders closing books and avoiding major positions.
Looking ahead, the rebound is being driven less by a single catalyst and more by a cluster of supportive factors, including improved liquidity expectations, a steadier policy outlook in Washington, and markets that remain well below cycle highs across other asset classes.
Nonetheless, Thursday’s pullback underscores that the early-year rally is not guaranteed. Crypto remains closely tied to bitcoin dominance, and any slowdown in inflows or renewed demand for traditional assets could test the strength of the rebound.
