Bitcoin, XRP, and other major cryptocurrencies faced another downturn on Thursday as the market responded to rising bond yields and mixed U.S. economic signals.
Bitcoin’s Volatility and XRP’s Resilience
Bitcoin, the largest cryptocurrency by market capitalization, fell to $93,500 early Thursday after briefly surpassing $100,000 earlier in the week. This marks a volatile start to 2025, with Bitcoin struggling to maintain stability above the psychological milestone.
This two-day slide mirrors its performance in mid-December when the digital asset fell 10% after hitting an all-time high of $106,000. Analysts suggest Bitcoin may need to find a stable floor before buyers regain confidence.
XRP, Ripple Labs’ transaction-settlement token, showed more resilience, trading at $2.32—down 1% over the past 24 hours but still 12% up for the year. Over the past three months, XRP has surged 338%, fueled by optimism following President-elect Donald Trump’s victory, which many see as potentially crypto-friendly.
Economic Factors Weigh on Cryptos
The cryptocurrency market’s decline coincided with rising bond yields, which have spiked due to stronger-than-expected U.S. economic data. The yield on the 10-year Treasury note climbed to 4.681% Thursday, up from 4.275% a month ago, as traders adjusted expectations for fewer interest rate cuts in 2025.
The stronger bond yields not only impacted stocks but also appeared to influence digital assets, highlighting a growing connection between traditional economic indicators and cryptocurrency performance.
Broader Crypto Market Performance
Other major cryptocurrencies also felt the pressure.
- Ether (ETH): The second-largest cryptocurrency slipped 1% over the past 24 hours, trading at $3,315.
- Solana (SOL): Down 2% as it struggled to maintain recent gains.
- Dogecoin (DOGE): The meme coin dropped 3%, adding to its recent losses.
Despite these setbacks, XRP’s ongoing rally and Bitcoin’s persistent attempts to reclaim $100,000 underscore the market’s potential for sharp reversals.
What Lies Ahead
Market watchers are cautiously optimistic about a potential boost for crypto should Trump’s administration announce policies favorable to digital assets. However, analysts like David Morrison of Trade Nation caution that Bitcoin may need to consolidate before it attracts renewed buying interest.
For now, cryptocurrencies remain vulnerable to broader economic shifts, with Friday’s U.S. jobs report expected to be a critical factor influencing investor sentiment.
