Bitcoin Drops 1.08% as U.S. Economic Indicators Weaken

Bitcoin's recent rally is encountering obstacles as a report from Matrixport highlights signs of a weakening U.S. economy. The report, released on June 6, 2025, indicates that two key economic indicators have reached their lowest levels in months. This development comes as investors continue to focus on positive ETF inflows, potentially overlooking the underlying risks.

Matrixport's analysis points to several concerning trends, including weakening funding dynamics and a decline in stablecoin activity. These metrics suggest a potential shift in the market, with the firm's models already flashing early caution signals. Despite these warnings, the broader market has yet to fully reflect these emerging risks.

Bitcoin's price has already responded to this shifting outlook, with a notable drop of 1.08% over the past 24 hours, trading at $103,637.93 at the time of the report. The asset experienced a volatile intraday session on June 5, hitting a high of $104,700 before plunging sharply below the $101,000 mark. A minor recovery followed in the early hours of June 6, aligning with Matrixport’s earlier advice for traders to secure profits after a two-month bullish trend. The broader altcoin market has also been affected, with Ethereum (ETH) and Solana (SOL) down 4% and 11%, respectively, in the same period.

Despite the price dip, trading activity intensified, with Bitcoin’s volume surging by 45.32% to reach $62.44 billion. This raised the volume-to-market cap ratio to 3.02%, indicating elevated market participation during the sell-off. Bitcoin’s total market capitalization declined to $2.05 trillion, while its circulating supply remained at 19.87 million.

Adding to the market pressure, the latest U.S. ISM Non-Manufacturing PMI report showed unexpected weakness. This index, which reflects the performance of the services sector responsible for about 80% of U.S. GDP, fell to its lowest level since July 2024. Most economists had anticipated a rebound, so this decline signals a mild, and unexpected, contraction. Matrixport suggested that some of the previous strength seen in economic demand might have been tied to accelerated purchasing by companies ahead of anticipated tariffs. With that “front-loaded” activity now fading, the firm believes investor positioning could shift further in the coming weeks.

Looking ahead, Matrixport has identified two key macro indicators for investors to monitor closely: oil prices and the U.S. dollar. A continued drop in oil could signal deeper economic stress. On the other hand, weakness in the dollar might support the case for future interest rate cuts. However, with bond yields still trading in a range and inflation expectations remaining elevated, Matrixport notes that the Federal Reserve is widely expected to stay on hold with its current interest rate policy for now.