Bitcoin is trading around $61,100, down roughly 3% in a day and about 7% over the week, after a stronger-than-expected U.S. May jobs report pushed rate expectations higher and triggered a broad risk-off move across global markets.
Gold also fell around 2%, slipping below $4,200 per ounce. The fact that both assets dropped together runs against the common assumption that they behave differently during macro stress.
The catalyst was U.S. labor data showing 172,000 non-farm payrolls in May versus 130,000 expected, with April also revised up to 214,000. The stronger print reinforced the idea that the Federal Reserve will keep policy tight for longer, potentially delaying rate cuts deep into 2027 and forcing a broad repricing of global liquidity conditions.
Higher Rates Hit Both Bitcoin and Gold
Stronger economic data reduces the need for monetary easing, pushing real yields higher and strengthening the U.S. dollar—conditions that typically pressure non-yielding assets like Bitcoin and gold.
The 10-year Treasury yield rose to 4.54%, while Brent crude climbed near $92 per barrel, adding inflation pressure and making the Fed’s policy path more complicated.
New Fed Chair Kevin Warsh now faces a key decision at the June 17–18 FOMC meeting, where policymakers must decide between maintaining current policy guidance or signaling a more restrictive stance if inflation remains sticky.
Cleveland Fed President Beth Hammack has already suggested the Fed may need to act soon, while WSJ’s Nick Timiraos noted that the strong jobs data has effectively removed expectations for near-term rate cuts.
At the same time, Bitcoin ETF flows continue to weaken. According to sFOX’s Diana Pires, dip buyers are present but not enough sustained institutional demand has returned to stabilize the market.
Ongoing outflows from U.S. spot Bitcoin ETFs, combined with Strategy’s first BTC sale since 2022, have further weakened the narrative of consistent institutional support that previously helped keep Bitcoin above $70,000.
Equity markets also reflected the risk-off tone, with South Korea’s Kospi down 6.3%, the MSCI Asia-Pacific index off 2.5%, and Nasdaq 100 futures slipping 0.8%.
More than $500 million in bearish positions were liquidated, suggesting the earlier bounce was driven mainly by short covering rather than new capital inflows. Bitcoin’s move toward $62,500 failed to attract enough spot demand to hold.
Bitcoin and Gold Correlation Remains Unstable
The relationship between Bitcoin and gold continues to fluctuate. While longer-term correlations have recently moved toward 0.6, shorter-term data shows sharp swings into negative territory, reflecting how quickly macro conditions can change their relationship.
A dovish outcome from the June 17–18 FOMC meeting could trigger a relief rally, but a hawkish stance or tightening signal could extend the downside.
Bitcoin Technical Structure Weakens
Bitcoin is trading near $61,146 and has broken below its February lows, a key support level that previously held the broader recovery structure in place. This marks its weakest level since mid-2024 and signals clear technical deterioration.
The $61,000–$62,000 zone had been critical for maintaining the bullish setup. Losing it decisively shifts the market into a more fragile phase.
If downside pressure continues, the next major support sits in the $55,000–$58,000 area, aligned with a prior accumulation zone from mid-2024.
While sharp declines often produce short-term rebounds, those moves are likely to face selling pressure unless stronger spot demand returns.
To stabilize, Bitcoin would need to reclaim $64,000–$65,000, with $68,000 as the next major level required for a sustained recovery.
For now, the market remains in a breakdown phase, with sellers in control and buyers needing to rebuild structure before any meaningful rebound can take shape.
