(Bloomberg) -- Bitcoin slumped to an almost two-month low as investors dumped riskier assets following a sharp rise in bond yields.

The original cryptocurrency dropped as much as 5.3% to $89,329 on Monday, its lowest since Nov. 18 and well below the peak of $108,316 it reached in December. Other cryptoassets were down even more, with Ether and Solana down as much as 10%.

Stronger-than-expected US jobs data on Friday prompted traders to curtail bets that the Federal Reserve may cut interest rates again any time soon, exacerbating an already choppy start to 2025.

“The start of the new year has not been easy for the crypto market,” said Alex Kuptsikevich, chief market analyst at FxPro. “Adding to the unease is the fact that last week’s upside momentum failed to develop, only attracting sellers.”

The downturn came even as MicroStrategy bought Bitcoin for a 10th consecutive week. Shares of the software firm turned self-styled Bitcoin Treasury company fell 3.2%.

A so-called head and shoulders chart pattern may have now formed for Bitcoin, according to Piotr Matys, a senior FX analyst at InTouch Capital Markets, which indicates a trend reversal from bullish to bearish territory. Since $91,600 was viewed as a major support level, the token’s breach below that point now points to a “strong technical bearish signal for Bitcoin,” Matys said.

Bitcoin’s next low may come around the $88,000 mark if bearish sentiment wins out, Kuptsikevich added, with a quick pullback from there to around $74,000 also possible.

The debut of US exchange-traded funds tied directly to Bitcoin, along with President-elect Donald Trump’s outspoken support for the digital-assets industry, lifted the cryptocurrency to a record high last year. That optimism has waned in 2025, with some analysts suggesting that traders are waiting for certainty following Trump’s Jan. 20 inauguration.

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