Appearing set for a run to a new record high earlier on Thursday, bitcoin (BTC) fell sharply in U.S. afternoon trading as tumbling bond markets took a toll on risk assets.

The positive price action came as President-elect Donald Trump said “we’re going to do something great with crypto” while ringing the opening bell at the New York Stock Exchange, reiterating his ambition to embrace digital assets in the U.S. and create a strategic bitcoin reserve. Alongside, the European Central Bank trimmed its benchmark interest rates by 25 basis points and in its dovish policy statement hinted that more rate cuts were likely to happen.

Bitcoin rose as high as $102,500, its strongest price since last week’s all-time record above $104,000. Not only did that rally not hold, but the $100,000 level didn’t either, with the price falling to $99,800 by press time late Thursday afternoon.

Major risk assets as a group sold off as well, perhaps as Western bond markets reacted negatively to the ECB dovishness. The German 10-year Bund yield rose 8 basis points to 2.21% and the U.S. 10-year Treasury yield gained 6.5 basis points to 4.34%. U.S. stocks gave up early gains to close lower, the Nasdaq dropping 0.7% and S&P 500 0

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Author: Krisztian Sandor