Bitcoin experienced a brief rally to $90,000 before dropping to nearly $85,000, causing uncertainty among users on the Myriad prediction market platform about the likelihood of reaching six figures or a Santa rally. Bitcoin was trading at $85,921, with $155 million in derivatives contracts liquidated and BTC dipping to $85,373.

Following Bitcoin’s lead, Ethereum dropped 4% to $2,824 after reaching above $3,000, down 16% in the last week. Other major assets also saw losses. Outflows from Bitcoin ETFs and the U.S. Bureau of Labor Statistics reporting the highest unemployment rate since 2021 contributed to market uncertainty.

Bitcoin traders are preparing for the Bank of Japan to potentially raise rates, impacting the yen “carry trade” and liquidity that fuels risk asset rallies. Bitwise Chief Investment Officer anticipates the rate hike to be priced into markets, but warns of potential short-term downward pressure due to investor reactions to the headline.

Read more at Yahoo Finance: Santa Rally Hopes Fade as Bitcoin Jumps to $90K, Then Falls Even Harder