In January 2025, Bitcoin took a major hit, dropping to a two-month low of around $90,957. The main reason? Investors started pulling their money out of riskier assets like crypto after U.S. bond yields surged. This shift was triggered by unexpectedly strong U.S. jobs data, which led traders to rethink their expectations about potential interest rate cuts from the Federal Reserve.

It wasn’t just Bitcoin that suffered—Ethereum and other major cryptocurrencies also saw sharp declines. The market downturn highlighted how sensitive crypto remains to broader economic trends, including government policies and interest rate decisions.

Adding to the uncertainty, regulatory concerns and large Bitcoin movements by government entities also played a role in shaking investor confidence. This episode served as a reminder that, while Bitcoin can be a powerful asset, it’s still heavily influenced by global financial trends and investor sentiment.