Bitcoin (BTC) price falls under pressure from macroeconomic data – can it hold the $95,000 mark this week?

Source: Cointelegraph Original: "Bitcoin (BTC) price falls under pressure from macroeconomic data - Can it hold the $95,000 mark this week?"

Key points summary:

On April 28, 2025, Bitcoin experienced a sharp pullback, falling by $2,000 to $93,500. This price fluctuation was highly synchronized with the decline in U.S. Treasury yields, indicating that traders were seeking relatively safer assets.

Although Bitcoin traders are moderately satisfied with the 6% increase over the past week, there remains uncertainty in the market about why Bitcoin has consistently failed to stay above $95,000.

The sudden pullback of Bitcoin after hitting $95,500 mirrors the intraday performance of U.S. Treasury yields. The decline in yields indicates that investors are willing to accept lower returns to hold bonds, which suggests an increased demand for safe assets. This trend indicates a sudden decrease in risk appetite across major financial markets.

China's tariff cuts boost optimism, but U.S. trade concerns reverse market sentiment.

According to Newsweek's report on April 25, China has quietly reduced tariffs on some imports of U.S.-made semiconductors and circuit boards to zero. This news boosted investor optimism over the weekend. Notably, the U.S. small-cap stock index, the Russell 2000, continued its upward momentum on April 28, approaching its highest level in nearly three weeks.

However, this positive sentiment reversed after U.S. Treasury Secretary Scott Bessent's interview with CNBC. In the interview, Bessent stated that the responsibility for the trade agreement should lie with China.

Despite the escalating trade tensions increasing the risk of economic recession, many American companies have reported strong performances in their first-quarter earnings. According to a report by FactSet, 73% of companies exceeded analysts' expectations for earnings.

Bitcoin has repeatedly failed to maintain a price above $95,000, seemingly related to broader macroeconomic concerns. Additionally, Bitcoin has not yet successfully decoupled from stock market trends, indicating that investors are not fully convinced of its effectiveness as a safe-haven asset during potential economic downturns.

In addition, there are concerns that the recent momentum to keep Bitcoin's price above $90,000 is largely driven by Strategy's $4.28 billion purchase of BTC since mid-March. Furthermore, 97% of the previously approved common stock issuance plan has been utilized, raising questions about the long-term sustainability of Michael Saylor's continuous accumulation strategy.

Bitcoin struggles as strong earnings season contrasts with macroeconomic concerns.

Despite the stock market benefiting from strong earnings season performance, Bitcoin prices are weighed down by expectations of a worsening macroeconomic environment.

In March, U.S. existing home sales recorded the largest monthly decline in over two years, falling by 5.9% month-on-month. At the same time, according to CNBC, China has also proposed plans to support employment and assist export enterprises in coping with factory production cuts caused by weak consumer demand.

Against the backdrop of increasing global economic uncertainty, for Bitcoin to continuously break through the $100,000 mark, it is not enough to rely solely on strong capital inflows from a week of spot Bitcoin ETFs, especially when Strategy is simultaneously purchasing a large amount of Bitcoin.

If investors want to believe that Bitcoin will reach a new historical high in 2025, the asset must show more apparent signs of divergence from the trends of the US stock market and provide more evidence that central banks around the world will increase liquidity to prevent a financial crisis.

Currently, traders are focused on the direction of U.S. interest rates and whether the Federal Reserve may reverse its balance sheet policy, thereby ending the monetary tightening cycle that has lasted for more than two years.

Related articles: Bitcoin (BTC) price may reach a new 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 opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and positions of Cointelegraph.