3 Minutes
Market reaction: BTC tumbles beneath the $100,000 mark
Bitcoin plunged under the key psychological level of $100,000 following the U.S. government’s shutdown resolution, trading around $98,962 at last check. The decline surprised some traders because the end of the shutdown is normally seen as positive for risk assets. Instead, the opposite unfolded as investors reassessed macro drivers that weigh on crypto markets.
Why the rally didn’t materialize
Rather than a classic "buy the rumor, sell the news" move, BTC fell as the shutdown’s conclusion shifted investor focus back to broader economic headwinds. The perceived improvement in U.S. political risk boosted demand for Treasury securities, pushing yields higher. Simultaneously, sentiment toward high-beta assets, especially tech stocks, weakened — a dynamic that often drags on bitcoin given its growing correlation with equities.
Macro forces: Treasury yields and Fed policy
Ten-year Treasury yields jumped about 29 basis points to roughly 4.106%, drawing capital to safer, yield-bearing instruments and away from speculative assets like bitcoin. At the same time, expectations around Federal Reserve policy and guidance remained dovish in some respects but inconsistent in others, creating uncertainty. Higher nominal yields reduce the relative attractiveness of non-yielding assets and can pressure BTC and other cryptocurrencies.
Equities and crypto correlation intensifies
The stock market also reacted, led by weakness in tech. The Nasdaq composite fell approximately 2.5%, the S&P 500 dropped about 1.6%, and the Dow slipped near 1.4%. These declines underscore bitcoin’s increased correlation with Nasdaq-listed tech stocks — a correlation that can magnify losses during risk-off episodes and reshape portfolio allocations among institutional and retail crypto holders.
What traders and investors should watch
Key indicators to monitor include Treasury yields, Federal Reserve commentary, dollar moves, and equity market breadth. For crypto-specific signals, watch on-chain flows, derivatives funding rates, and institutional demand metrics. A sustained move above $100,000 would signal renewed confidence, while continued pressure from yields and equity weakness could push BTC toward deeper support levels.
For blockchain and crypto market participants, the episode highlights how macroeconomic shifts — not just on-chain fundamentals — can rapidly influence bitcoin price action and broader market positioning.
Source: crypto
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