Bitcoin Reverses Losses, Gains 0.75% Amid Market Volatility

Bitcoin experienced a notable turnaround on Monday, reversing overnight losses to achieve a 0.75% gain by early morning. This performance outpaced traditional risk assets as global markets reacted to conflicting signals regarding tariffs and central bank policies. The cryptocurrency initially dropped by 1.2% around 03:00 BST but quickly staged a V-shaped recovery, closing Asian trading hours above $93,000. Traders are now eyeing the $95,000 mark in the near term.

The broader market landscape saw a cross-asset squeeze following an initial risk-off sentiment triggered by weekend developments. These included noise around U.S. tariff policy and President Trump’s posts on Truth Social, where he claimed that income tax would be replaced by tariff revenue. This announcement sparked a wave of uncertainty, leading to a temporary panic among investors.

However, by 05:30 BST, European participants began to calm the markets, lifting equities, oil, and Bitcoin in tandem. Gold, however, lagged behind, slipping an additional 0.8% to $3,292 per ounce. This decline was attributed to a tentative easing in U.S.-China rhetoric, which unwound safe-haven flows that had previously driven gold prices higher.

In the bond market, Treasuries diverged from Chinese bonds, reflecting a miniature bear-steepener. Traders responded by buying Beijing bonds and selling Washington bonds. U.S. 10-year yields reached 4.25%, the highest level since April 11, amid concerns over supply before Wednesday’s auction slate and the upcoming Federal Reserve meeting.

Oil prices, which had initially gained, faded to settle lower. WTI crude oil closed at $63.26 per barrel as attention shifted to a potential OPEC+ output adjustment scheduled for May 5. Traders cited the International Energy Agency’s warning that supply growth could outpace demand by 0.7 million barrels per day, adding to the market’s volatility.