Bitcoin plunges back below $100k, now stands at $97k. What’s going on?

Bitcoin has crashed below $100,000. As of press time, it’s trading at $97,063, down 4.8% in twenty-four hours. This sharp drop is tied to rising Treasury yields, which spooked the broader market and hit risk assets hard.

While the CoinDesk 20 index, which tracks the broader crypto market, plunged by over 5%. Crypto-related stocks took a punch too. Coinbase sank over 7%. MicroStrategy dropped by 9%.

Even Bitcoin miners like Mara Holdings and Core Scientific weren’t safe, with each losing around 5% in value. The market’s mood flipped after new data from the Institute for Supply Management showed faster-than-expected growth in the U.S. services sector. Inflation concerns came roaring back.

Treasury yields spike

The 10-year Treasury yield is one factor to blame. It surged after that U.S. services data landed, making it harder for Bitcoin and other growth-focused assets to compete. Investors typically run to bonds when yields rise, leaving Bitcoin in the dust.

Just a day ago, Bitcoin was comfortably trading above $102,000, with optimism building around a yearlong bull run for 2025. And the Federal Reserve isn’t helping matters. Sure they cut rates a few times last year, but in December, they said they were pumping the brakes on 2025 cuts.

Historically, Bitcoin thrives on rate cuts—more money flows into the market, driving up prices. But if the Fed keeps the leash tight, Bitcoin could face a bumpy road. Now Bitcoin is up 3% so far in 2025 and saw a mind-blowing 120% gain in 2024.

Meanwhile, Michael Saylor’s MicroStrategy dropped $101 million on 1,070 more Bitcoins just yesterday, per usual. That brings their total stash to 447,470 Bitcoins, bought at an average price of $62,503 each. Total spend? A cool $27.97 billion.

The company’s Bitcoin investments are delivering insane returns. In Q4 2024 alone, the company reported a Bitcoin yield of 48%. For the entire year, they pulled off a 74.3% return.