Santa Rally Hopes Fade as Bitcoin Jumps to $90K, Then Falls Even Harder

Core Insights - Bitcoin experienced a brief rally to $90,000 but subsequently fell to nearly $85,000, indicating market volatility and uncertainty regarding future price movements [1] - Confidence among users on the Myriad prediction market has decreased, with the probability of Bitcoin reaching $100,000 dropping from 69% to 57%, and the likelihood of a Santa rally now below 4% [2] Market Performance - Bitcoin's current trading price is $85,921, reflecting a 2% decline over the past day, with a low of $85,373 earlier [3] - Ethereum has also seen a decline of 4% in the last day, now priced at $2,824, and down 16% over the past week, leading losses among the top 10 crypto assets by market cap [4] Fund Flows and Economic Indicators - Bitcoin ETFs have experienced outflows, with a total loss of $634 million in funds this week, indicating a potential shift in investor sentiment [4] - Recent U.S. jobs data revealed an increase in unemployment, the highest since 2021, which may be impacting market confidence [5] Interest Rate Considerations - Anticipation of a potential rate hike by the Bank of Japan could affect global liquidity, which has historically supported risk assets like Bitcoin [5] - Bitwise Chief Investment Officer noted that while the rate hike is expected and priced into the market, it could still create short-term downward pressure due to investor reactions to the headline [6]