Source: Cointelegraph
Original: “Bitcoin (BTC) Price Cools Off Amid Worrying Macroeconomic Data—Will $95K Hold This Week?”
Key Points Summary:
On April 28, 2025, Bitcoin experienced a sharp pullback, dropping $2,000 to $93,500. This price fluctuation was highly synchronized with the decline in U.S. Treasury yields, indicating that traders are seeking relatively safer assets.
While Bitcoin traders were moderately satisfied with the 6% increase over the past week, there remains uncertainty in the market regarding why Bitcoin has consistently failed to stay above $95,000.
The sudden pullback of Bitcoin after reaching $95,500 mirrored the intraday performance of U.S. Treasury yields. The decline in yields suggests that investors are willing to accept lower returns to hold bonds, indicating an increased demand for safe assets. This trend suggests a sudden drop in risk appetite in major financial markets.
China's Tariff Cuts Boost Optimism, but U.S. Trade Concerns Reverse Market Sentiment
According to Newsweek on April 25, China quietly reduced tariffs on some U.S. semiconductor and circuit board imports to zero, which boosted investor optimism over the weekend. Notably, the U.S. small-cap index—the Russell 2000—continued its upward momentum on April 28, nearing its highest level in three weeks.
However, this positive sentiment reversed after U.S. Treasury Secretary Scott Bessent's interview with CNBC. Bessent stated in the interview that the responsibility for trade agreements should lie with China.
Despite escalating trade tensions increasing the risk of economic recession, many U.S. companies have reported strong first-quarter earnings. According to a FactSet report, 73% of companies exceeded analysts' expectations.
Bitcoin's repeated failure to maintain a price above $95,000 seems related to broader macroeconomic concerns. Additionally, Bitcoin has not successfully decoupled from stock market trends, indicating that investors are not yet fully convinced of its effectiveness as a safe-haven asset during potential economic downturns.
Furthermore, there are concerns that the recent momentum keeping Bitcoin's price above $90,000 is largely driven by Strategy's $4.28 billion purchase of BTC since mid-March. The previously approved common stock issuance plan has already been 97% utilized, raising questions about the long-term sustainability of Michael Saylor's continued accumulation strategy.
Bitcoin Struggles While Strong Earnings Season Contrasts with Macroeconomic Worries
Despite the stock market benefiting from a strong earnings season, Bitcoin's price is weighed down by expectations of a deteriorating macroeconomic environment.
U.S. existing home sales recorded their largest monthly decline in over two years in March, falling 5.9% month-over-month. Meanwhile, according to CNBC, China has also proposed plans to support employment and help export companies cope with factory production cuts due to weak consumer demand.
In the current context of increasing global economic uncertainty, Bitcoin will need more than just a week of strong inflows into spot Bitcoin ETFs to sustain a breakthrough above the $100,000 mark, especially with Strategy's simultaneous large-scale Bitcoin purchases.
If investors hope to believe that Bitcoin will reach a new all-time high in 2025, the asset must show more significant signs of divergence from U.S. stock trends and provide more evidence that central banks will increase liquidity to prevent financial crises.
Currently, traders are focused on the direction of U.S. interest rates and whether the Federal Reserve might reverse its balance sheet policy, thereby ending a monetary tightening cycle that has lasted for over two years.
Related: Bitcoin (BTC) Price Could Hit All-Time High in May—Here’s Why
This article is for general informational purposes only and does not constitute legal or investment advice. The views expressed in this article are solely those of the author and do not necessarily reflect or represent the views and positions of Cointelegraph.
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