Bitcoin (BTC) Drops Alongside Falling Treasury Yields, Signaling Investors' Flight to Safer Assets

Bitcoin (BTC) experienced a sharp $2,000 correction to $93,500 on April 28. This price movement closely tracked the decline in US Treasury yields, suggesting that traders were seeking the relative safety of more secure assets.

Bitcoin (BTC) price slid on April 28 as US Treasury yields fell, signaling that investors were flocking to safer assets.

The move saw BTC/USD drop sharply from around $95,000 to lows of $93,500 on Binance. This brought the apex coin close to key support at $90,000, levels which had held since mid-March.

Bitcoin struggles as Treasury yields fall

Coming after a week of moderate gains and a failure to sustain attempts at breaking out toward $95,500 and new yearly highs, the downturn signaled ongoing malaise among traders.

Despite the narrative of a "risk-on" market, with the US Federal Reserve widely expected to pivot from its tightening cycle, several indicators pointed to deteriorating economic sentiment.

China’s tariff cuts had fueled optimism, but US trade concerns reversed sentiment

Investors had enjoyed optimism after the weekend brought news that China had quietly slashed tariffs to zero on selected US semiconductor and circuit board imports, as reported by Newsweek on April 25. Notably, the US Russell 2000 small-cap index maintained positive momentum on April 28, remaining near its highest level in over three weeks.

However, this optimism waned following an interview with US Treasury Secretary Scott Bessent on CNBC, where he placed the onus on China to strike a trade deal.

Although recession risks had increased amid escalating trade tensions, many US companies were currently reporting strong first-quarter results. According to a FactSet report, 73% of these companies had posted earnings that exceeded analysts’ expectations.

Bitcoin’s repeated failure to sustain levels above $95,000 appeared to be linked to broader macroeconomic concerns.

Additionally, the cryptocurrency’s inability to decouple from stock market trends indicated that investors were not yet convinced of Bitcoin’s effectiveness as a hedge during potential economic downturns.

There were also concerns that much of the recent bullish momentum, which had kept Bitcoin’s price above $90,000, was being driven by $4.28 billion in BTC acquisitions by Strategy since mid-March. Moreover, 97% of the previously approved common share issuance had already been utilized, raising questions about the long-term sustainability of Michael Saylor’s accumulation strategy.

Bitcoin faces strong stock earnings vs macro woes

While the stock market was benefiting from a robust earnings season, Bitcoin’s price was being weighed down by perceptions of deteriorating macroeconomic conditions.

US existing home sales in March recorded their largest monthly decline in over two years, decreasing 5.9% compared to the previous month. Meanwhile, China had outlined plans to support employment and assist exporters after factories reduced production due to weak consumer demand, according to CNBC.

Related: Crypto ETPs hit 3rd-largest inflows on record at $3.4B — CoinShares

Given the current global economic uncertainty, a sustained rally in BTC above $100,000 would require more than a single week of strong inflows into spot Bitcoin exchange-traded funds (ETFs), especially as this coincided with significant buying activity from Strategy.

For investors to have confidence in a new Bitcoin all-time high in 2025, the cryptocurrency must demonstrate a clearer divergence from US stock market trends and provide further evidence that central banks will inject liquidity to prevent a crisis.

At present, traders were keeping a close eye on the trajectory of US interest rates and the possibility of a reversal in the Federal Reserve’s balance sheet, which could herald an end to a period of monetary tightening that had spanned more than two years.