Interest rates, which fueled much of the market’s momentum in 2024, may now be reversing course and acting as a headwind.

As global markets slowed for the Christmas holiday, Bitcoin (BTC) appeared ready to reclaim the $100,000 milestone after briefly dipping below $93,000 earlier in the week. However, the rally lost steam near $99,800 as Asian markets opened on Thursday, and prices quickly retreated to around $95,000 within hours.

At press time, Bitcoin was trading at $95,300, reflecting a 3.1% decline over the past 24 hours.

The broader CoinDesk 20 Index also fell, dropping 4.2% during the same period. Major cryptocurrencies, including Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), and Avalanche (AVAX), recorded losses ranging from 4% to 7%.

In traditional markets, U.S. stock futures indicated slight losses as trading resumed on Thursday, while gold and oil prices posted modest gains.

Despite Bitcoin more than doubling in value this year, recent declines suggest shifting market dynamics. A key factor contributing to this shift could be the rising pressure from interest rates, which had previously served as a tailwind.

The 10-year U.S. Treasury yield climbed to 4.63% early Thursday, nearing its highest level of 2024. This marks an increase of nearly 100 basis points since the Federal Reserve implemented a 50 basis-point rate cut in September.

Macro analyst Jim Bianco noted that the rapid rise in long-term yields after a rate cut is an anomaly in modern economic history. “The bond market will continue driving yields higher as long as the Fed maintains its messaging about rate cuts in 2025,” Bianco said. “If the Fed doesn’t adjust its stance, bond yields could rise sharply, potentially triggering broader financial disruptions.”