Bitcoin Dips Below $95K as Economic and Geopolitical Pressures Mount

Bitcoin experienced a notable decline over the weekend, slipping below $95,000 in early Monday trading after reaching multi-month highs above $97,000 on Friday. This retreat mirrors broader financial market tensions, driven by rising Treasury yields and geopolitical uncertainties that have dampened investor appetite for riskier assets like cryptocurrencies. The sharp pullback shows Bitcoin’s growing sensitivity to macroeconomic trends, as it moves in tandem with equities and other assets influenced by shifting monetary policy expectations.

The catalyst for this downturn began with Friday’s U.S. jobs report, which revealed non-farm payrolls grew by 177,000 in April, slightly surpassing forecasts, while the unemployment rate edged up to 4.2%. Initially, markets responded with optimism, pushing Bitcoin close to $98,000 as risk assets gained traction heading into the weekly close. However, this enthusiasm was short-lived. Rising bond yields, with the U.S. 10-year Treasury yield climbing above 4.3%, sparked concerns that the Federal Reserve might delay anticipated interest rate cuts. Higher yields typically signal sustained borrowing costs, which can weigh heavily on speculative assets like Bitcoin.

Oil Prices and Geopolitical Tensions Add to Market Strain

Compounding these pressures, oil markets faced a sharp decline after OPEC+ announced plans to accelerate production increases, adding 411,000 barrels per day to global supply starting in June. This decision, reported by Reuters, led to a nearly 4% drop in Brent crude futures, shifting key time spreads into contango and raising fears of a near-term oversupply. The downturn in oil prices rippled across commodity markets, dampening overall sentiment, though gold emerged as a bright spot, with spot prices climbing above $3,250 per ounce as investors sought traditional safe havens.

Geopolitical developments further clouded the outlook. Ongoing trade tensions, particularly between the United States and China, resurfaced over the weekend. President Donald Trump emphasized his desire for a “fair deal” with China, a statement that, while measured, injected caution into markets sensitive to disruptions in global supply chains and export demand. This uncertainty prompted a defensive shift among investors, with U.S. equity futures, including S&P 500 E-mini contracts, trending lower on Monday morning. The U.S. dollar softened slightly, while gold continued its upward trajectory, reflecting a flight to safety.

Bitcoin’s 3% drop from its Friday peak highlights its increasing correlation with broader financial conditions. As markets grapple with rising yields, declining oil prices, and geopolitical headline risks, digital assets are proving less insulated from macroeconomic currents than some investors might hope. Looking ahead, the Federal Reserve’s upcoming policy decision on Wednesday looms. Investors are keenly focused on whether Chair Jerome Powell will address calls for rate cuts or adopt a cautious stance in light of mixed signals from recent inflation and employment data. For now, Bitcoin’s trajectory remains closely tied to these unfolding economic and geopolitical narratives.