Bitcoin (BTC) erased all of its early 2025 gains on Wednesday as macro turmoil and the global bond exchange accelerated the selloff in crypto prices.

The biggest crypto fell to a session low of $92,600 in US trading hours, down nearly 10% in two days from Monday’s peak above $102,000. It has recovered some of the losses and recently traded at $94,300, still down 2.5% over the last 24 hours.

Cardano’s ADA, Render’s RNDR and Aptos’ APT led losses in the broad market benchmark CoinDesk 20 Index, which fell over 3% over the same period.

The steep two-day plunge liquidated nearly $1 billion in leveraged derivatives positions across cryptoassets, mostly long bets on higher prices, CoinGlass data shows. The slide also temporarily pushed BTC below where it started the year. At the most recent price, it was up 1% from the January 1st open.

No savings were made on crypto-related stocks. Several bitcoin miners, including TeraWulf (WULF), Bit Digital (BTBT), Bitdeer (BTDR), IREN (IREN), and Hut 8 (HUT) endured a 5%-8% decline. Medical device maker Semler Scientific, which adopted a BTC financial strategy following in MicroStrategy’s (MSTR) footsteps, fell nearly 10% on the day and is now down more than 15% for the week and about 40% from its highs at the end of December. MSTR fell 2.2% on Wednesday.

Several analysts warned crypto traders of a treacherous January, with potential macro headwinds for risk assets ahead, including a hawkish Federal Reserve, rapidly rising long-term Treasury yields, sticky inflation metrics and the possibility of a US government shutdown. What appeared to kick-start the pullback across all assets was Tuesday’s strong US economic data print, prompting investors to scale back their rate cut expectations for the year.

In particular, Fed Governor Christopher J. Waller on Wednesday came out in support of further rate cuts throughout the year, allaying fears of inflation from potential tariffs enacted by President-elect Dinald Trump. However, that did little to change investors’ interest rate outlook, as CME FedWatch showed.

Released on Wednesday afternoon during US hours, minutes from the Fed’s latest policy meeting showed that most believed upside risks to inflation had increased and also evidenced some concern that Trump’s tariff policy could have more of an effect on price levels than previously thought .

Bitcoin bounce inbound?

With Wednesday’s drop, bitcoin returned to the lower end of its range, which it has traded in since late November. BTC is likely to see a rebound from the lows in the coming days, but prices may continue to consolidate rangebound and possibly pull back to lower levels before setting new record highs, according to well-followed cross-asset trader Bob Loukas, founder by Station3 NYC.

“Don’t need to be uber bearish, but we may need to fiddle around in a range and get more comfortable with $100,000 prints before we can really exit this area,” he said in an X post.

Friday’s US non-farm payroll data report and the Fed meeting later this month will affect BTC’s trajectory, hedge fund QCP noted in a Telegram broadcast, predicting a bounce as Trump’s January 20 inauguration approaches.

“With market expectations building, we believe bitcoin’s pullback is just a pause, setting the stage for a bullish rally as Trump’s inauguration fuels optimism,” QCP analysts said.