The surge in US bond yields dragged down Bitcoin to its lowest level in nearly two months.

Affected by the significant increase in US bond yields, investors are selling off high-risk assets, causing the price of Bitcoin to drop to its lowest point in nearly two months. On Monday, Bitcoin fell by 5.3% to touch $89,329, the lowest level since November 18, far from the high of $108,316 set in December. Other cryptocurrencies saw even greater declines, with Ethereum and Solana dropping by up to 10%. Last Friday, the US released stronger-than-expected job data, leading traders to reduce their bets on a near-term rate cut by the Federal Reserve, exacerbating the market turmoil at the beginning of 2025. "The new year is not friendly to the crypto market," said Alex Kuptsikevich, Chief Market Analyst at FxPro. "More worrying is that last week's uptrend could not be sustained and instead attracted more sellers." Despite MicroStrategy (MSTR.US) increasing its Bitcoin holdings for the tenth consecutive week, its stock price fell by 3.2%. The software company has transitioned into a company holding Bitcoin, but its latest buying behavior did not ease the market's pessimistic sentiment. According to Piotr Matys, Senior Forex Analyst at InTouch Capital Markets, Bitcoin may have formed a so-called "head and shoulders" pattern, which is typically a signal of a bullish trend turning bearish. Previously, $91,600 was seen as a key support level, but breaking this point created a "strong technical bearish signal for Bitcoin." Kuptsikevich added that if bearish sentiment dominates the market, the next low for Bitcoin could be around $88,000, with a likely quick rebound to around $74,000. Last year, the launch of exchange-traded funds (ETFs) directly linked to Bitcoin in the US, as well as President-elect Donald Trump's public support for the digital asset industry, pushed Bitcoin to record highs. However, this optimism has diminished in 2025. Some analysts believe that traders are waiting for further clarity in the market after Trump's inauguration on January 20. With the rise in bond yields and increasing uncertainty in the cryptocurrency market, Bitcoin and other digital assets may face greater pressure. Market participants are closely monitoring future economic data and policy developments to assess the next steps in the crypto market.