Bitcoin experienced a sharp decline, erasing its early-2025 gains as concerns over global bond markets and macroeconomic jitters accelerated the sell-off in crypto prices. The cryptocurrency dropped almost 10% in two days, reaching a session low of $92,600 before recovering slightly to around $94,300. Other cryptocurrencies, including Cardano's ADA, Render's RNDR, and Aptos' APT, also experienced losses. The plunge led to the liquidation of nearly $1 billion in leveraged derivatives positions across crypto assets. Crypto-related stocks were not spared, with several bitcoin miners and medical devices producer Semler Scientific experiencing declines. Analysts warned of potential macro headwinds for risk assets in January, including a hawkish Federal Reserve, rising long-term government bond yields, sticky inflation, and the possibility of a U.S. government shutdown. Despite the drop, some analysts predict a bounce in bitcoin's price as Trump's inauguration nears and market anticipation builds.



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