Bitcoin has fallen sharply from a month-high on Friday, past $97,000 over the weekend, with prices below $95,000 during trading earlier Monday, with wider macro pressures focusing on risk appetite.
Pullback, following Friday’s robust US employment report, raised concerns that the Fed could raise yields on the Treasury, sparking delays interest rate cuts. Non-farm salaries rose 177,000 in April, slightly surpassing expectations, but the unemployment rate rose to 4.2%. The market initially responded positively, with Bitcoin testing $98,000 late Friday, with risky assets caught up at the end of each week.
But as the bond harvest rose, optimism quickly faded. The US 10-year yield rose above 4.3% after data, reinforcing the notion that borrowing costs could rise longer. This pressure is increasingly trading in lockstep with stocks and other macro-sensitive assets as investors adapt to changing monetary policy expectations.
In addition to the pressure, crude prices fell sharply after OPEC+ surprised the market, resulting in accelerating the gradual returns of production hiking. On each Reuters, the group agreed to add 411,000 barrels per day to global supply in June, falling below support for crude oil prices. Brent Futures fell nearly 4% in the news, spreading key times across Contango, raising concerns about a short-term oversupply.
Oil’s sharp movements attenuated emotions across the commodity market, but Gold was against the trend. Spot prices rose above $3,250 early Monday as traders turned to traditional safe haven amid new uncertainties about global trade and growth.
Geopolitical tensions complicated the landscape regarding the ongoing US-led trade war. Over the weekend, President Donald Trump stressed that he “want fair deals” with China, but the statement was enough to pay attention to global supply chains and markets that are sensitive to export demand.
The 3% Bitcoin retreat from Friday’s peak reflects the wider financial position of digital assets. The combination of rising yields, lower oil prices and geopolitical headline risks has led to defensive changes across the market. US stock futures, including the S&P 500 E-MINI contract, fell below Monday morning, but the dollar was modestly softened and gold expanded.
The next catalyst approaches Wednesday, thanks to the Federal Reserve policy decision. Traders are closely watching whether Speaker Jerome Powell opposes the president’s demand for rate cuts or puts on a more balanced tone amidst conflicting inflation and employment data signals.
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