Bitcoin dipped below $90,000 on Thursday as the early-January rebound lost steam, even amid a global bond rally and rising bets on Federal Reserve rate cuts.

The cryptocurrency fell about 2% over 24 hours but remains up more than 3% for the week. Ether declined roughly 3%, maintaining a seven-day gain of around 6%, according to CoinGecko. U.S. spot bitcoin ETFs saw $486 million in outflows, marking their second consecutive day of losses this year.

Among major altcoins, XRP led declines with a 4.5% drop over 24 hours, though it is still up 17% for the week. Dogecoin recorded the strongest weekly gain, rising more than 22%.

Traditional markets reflected similar dynamics. U.S. Treasuries extended gains, pushing the 10-year yield to about 4.14%, after weak December payroll data suggested the Fed may have room to cut rates later this year. ADP reported a 41,000 rise in private-sector jobs, below the Bloomberg survey estimate of 50,000. Some markets briefly priced in two additional quarter-point cuts by year-end.

Asian bond markets followed, with Australian and New Zealand debt climbing and Japanese bond futures holding gains after a 30-year auction. Analysts say expectations of easier monetary policy tend to support risk assets like crypto, particularly when cash yields remain low.

The early-year rally also reflects post-holiday resets, as December saw thin liquidity and rangebound trading. Still, Thursday’s pullback highlights crypto’s sensitivity to bitcoin dominance and investor flows, showing the rebound may face further tests in the near term.