Bitcoin Drops 3% as U.S. Yields Rise, Oil Falls

Bitcoin experienced a significant decline over the weekend, falling below $95,000 during early Monday trading. This drop came after the cryptocurrency reached multi-month highs above $97,000 on Friday. The pullback was driven by broader macro pressures that weighed on risk appetite across global markets.

The initial catalyst for the market shift was a robust U.S. jobs report released on Friday. The report showed that non-farm payrolls grew by 177,000 in April, slightly above expectations, while the unemployment rate ticked higher to 4.2%. This data initially boosted risk assets, including Bitcoin, which tested $98,000 late Friday. However, the optimism was short-lived as bond yields climbed in response to the report.

The U.S. 10-year yield rose back above 4.3%, reinforcing concerns that borrowing costs may remain elevated for an extended period. This development pressured Bitcoin, which has increasingly traded in tandem with equities and other macro-sensitive assets as investors adjust to shifting monetary policy expectations.

Adding to the market pressures, oil prices fell sharply after OPEC+ announced it would accelerate its phased return of production hikes. The group agreed to add 411,000 barrels per day to global supply in June, which undercut support for crude prices. Brent futures dropped nearly 4% on the news, raising concerns about near-term oversupply and dampening sentiment across commodity markets.

Geopolitical tensions also played a role in the market's defensive shift. Over the weekend, President Donald Trump's remarks about the ongoing trade war with China injected caution across markets sensitive to global supply chains and export demand. Trump stressed that he “just wants a fair deal” with China, but the comments were enough to raise concerns about the potential impact on global trade and growth.

Bitcoin’s 3% retreat from Friday’s peak highlights how closely digital assets are now tied to broader financial conditions. The combination of rising yields, falling oil prices, and geopolitical headline risk triggered a defensive shift across markets. U.S. equity futures, including S&P 500 E-mini contracts, pointed lower Monday morning, while the dollar softened modestly and gold extended gains.

The next significant event for markets is the Federal Reserve’s policy decision on Wednesday. Traders are closely watching whether Chair Jerome Powell will push back against rate cut requests from the president or strike a more balanced tone amid conflicting inflation and employment data signals. The outcome of this decision could further influence Bitcoin’s price movements and broader market sentiment.