Coin Market

Bitcoin price cools off amid worrying macroeconomic data — Will $95K hold this week?

Published

4 weeks ago

April 28, 2025

Key Takeaways:

Bitcoin price dropped alongside falling Treasury yields, signaling investors’ flight to safer assets.

Strategy’s $4.28B Bitcoin purchases and stock market strength have supported BTC above $90,000.

A true breakout toward $100,000 will require Bitcoin to decouple from equities and stronger liquidity signals.

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.

While Bitcoin traders are moderately satisfied with the 6% gains achieved over the past week, there is ongoing uncertainty as to why BTC has been unable to maintain levels above $95,000.

US 5-year Treasury yield (left) vs Bitcoin/USD, 15 min. Source: TradingView / Cointelegraph

The abrupt correction in Bitcoin’s price after reaching $95,500 mirrored the intraday performance of US Treasury yields. A decrease in yields indicates that investors are willing to accept lower returns for holding bonds, which signals increased demand for safer investments. This pattern suggests a sudden decline in risk appetite across major financial markets.

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

Investors’ optimism increased over the weekend as news that China had quietly reduced tariffs to zero on selected US semiconductor and circuit board imports was 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 sentiment reversed following an interview with US Treasury Secretary Scott Bessent on CNBC, in which he placed the responsibility for a trade agreement on China.

US Russell 2000 futures (left) vs. Bitcoin/USD, 1h. Source: TradingView / Cointelegraph

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

Bitcoin’s repeated failure to sustain levels above $95,000 appears to be linked to broader macroeconomic concerns. Additionally, the cryptocurrency’s inability to decouple from stock market trends indicates that investors are not yet convinced of Bitcoin’s effectiveness as a hedge during potential economic downturns.

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

Bitcoin struggles as strong stock earnings contrast with macroeconomic concerns

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

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

Given the current global economic uncertainty, a sustained rally in BTC above $100,000 will require more than a single week of strong inflows into spot Bitcoin exchange-traded funds (ETFs), particularly as this coincides 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 are focused on the trajectory of US interest rates and the possibility of a reversal in the Federal Reserve’s balance sheet, which could end a period of monetary tightening that has lasted for more than two years.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Coin Market

Bitcoin buyer dominance at $111K suggests 'another wave' of gains

Published

8 minutes ago

May 23, 2025

Key points:

Bitcoin buyer interest remains strong at all-time highs, contrasting with the first touch of $100,000 in 2024.

The BTC price uptrend “may continue” as a result, CryptoQuant analysis concludes.

Bitcoin short-term holders are firmly in the black in a further potential bull market boost.

Bitcoin (BTC) buyers remain dominant on exchanges as all-time highs are met with unusual optimism.

Data from onchain analytics platform CryptoQuant shows a 90-day cumulative volume delta (CVD) favoring Bitcoin bulls.

CryptoQuant: BTC price uptrend “may continue”

BTC price all-time highs continue to find support among traders, with buyers staying dominant despite the market surging 50% in under two months.

Analyzing 90-day CVD, CryptoQuant contributor Ibrahim Cosar reveals the extent to which sellers have ceded control during that period.

“In short: Buy orders (taker buy) have become dominant again. In other words, more buy orders are being placed in the market than sell orders,” he summarizes.

“This generally signals that the uptrend may continue.”Bitcoin spot taker CVD. Source: CryptoQuant

CVD measures the difference between buy and sell volume over a three-month period. Until mid-March, sell-side pressure dominated the order book, with BTC/USD hitting multimonth lows under $75,000 in early April.

Neutral conditions then prevailed until buyer dominance reentered in May.

“The summary of the situation: As the price tests above $110K and reaches a new all-time high (ATH), buyers have not backed down. This could be setting the stage for another wave of upward movement,” Cosar concludes.

Bitcoin hodlers hold off on sales

As Cointelegraph reported, hodlers have broadly refrained from distributing coins to the market at current levels.

Daily profit-taking is half of what it was when Bitcoin first reached $100,000 in December 2024, research shows, while the price is 10% higher.

“Older coins were much less active this time, signaling stronger holding behavior,” onchain analytics firm Glassnode added in an X thread on the topic.

Coin age distribution shows the shift:

76.9% (May 2025)
44.6% (Dec 2024)

>6m-old coins:
13.4% (May 2025)
24.7% (Dec 2024)

Older coins were much less active this time, signaling stronger holding behavior. pic.twitter.com/8PZq8p3ZX7

— glassnode (@glassnode) May 22, 2025

CryptoQuant notes that price momentum increased after reclaiming the average cost basis for Bitcoin’s short-term holder (STH) cohort at just under $100,000 — entities buying within the last six months.

“Bitcoin is rallying after reclaiming the Short-Term Holder Average Cost basis — a key level that often serves as a strong buy-the-dip indicator during bull markets,” it told X followers.

Bitcoin STH cost basis data. Source: CryptoQuant

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Coin Market

DeFi near-zero onboarding costs can help 1.4B unbanked: 1inch co-founder

Published

8 minutes ago

May 23, 2025

Decentralized finance (DeFi) platforms have a major cost advantage over traditional banks when it comes to onboarding new users, according to Anton Bukov, co-founder of decentralized exchange (DEX) 1inch.

Speaking at a panel during Dutch Blockchain Week on May 22 in Amsterdam, Bukov said traditional banks spend between $100 and $300 per user to verify documents and set up accounts. Online banks, he said, spend about $20 to $30. In contrast, DeFi requires almost nothing beyond a smartphone and internet access.

“Onboarding to DeFi literally costs zero,” Bukov said. “You don’t need brick-and-mortar infrastructure or lengthy verification processes. Just connect and transact.”

Bukov said that this gives DeFi an edge over traditional financial institutions in reaching the 1.4 billion unbanked people who remain excluded from traditional finance due to high onboarding expenses.

1inch Network co-founder Anton Bukov at the Dutch Blockchain Week. Source: Cointelegraph

Reaching 1.4 billion unbanked users

“That’s why we have 1.4 billion people on the planet who are unbanked. No one’s going to invest those hundreds or tens of dollars into them because they will never return to them,” Bukov added.

Unlike traditional finance, which has high barriers to entry, Bukov said DeFi allows the unbanked to become a part of the global economy and engage in real-life transactions using stablecoins like Tether’s USDt (USDT).

With lower barriers to entry, DeFi becomes a tool for financial inclusion. Bukov said DeFi will continue to reach users who never had access to traditional banking as internet access expands globally.

“You can just get a phone, access to the internet, and you can exchange your chicken for USDT,” Bukov said, highlighting how easily DeFi enables participation in the global economy.

DeFi allows access to global liquidity

Apart from financial inclusion, Bukov said that the real value of crypto lies in how it gives access to global liquidity. The 1inch co-founder said crypto is evolving into an independent economic zone, where hundreds of billions flow through decentralized protocols.

“Crypto isn’t just about adopting stablecoins or building national digital currencies,” Bukov said. “It’s a growing global liquidity hub.”

He said that this liquidity is dynamic and allows financial experimentation, yield strategies and cross-border capital movement.

Bukov added that countries that align their regulations to enable easier access to this global liquidity can tap into economic opportunities and cooperation. “The more countries trade with each other, the more they succeed. Crypto works the same way,” he said.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story

Coin Market

Hyperliquid backs 24/7 crypto trading in CFTC comments submission

Published

8 minutes ago

May 23, 2025

Hyperliquid, a decentralized perpetuals exchange operating on its own layer-1 blockchain, has submitted formal comments on 24/7 derivatives trading to the United States Commodity Futures Trading Commission (CFTC).

In a May 23 X post, Hyperliquid Labs announced that it has “submitted two comment letters to the [CFTC] in response to its recent Requests for Comment on perpetual derivatives and 24/7 trading.” The team behind the decentralized exchange (DEX) added:

“We commend the CFTC for its proactive engagement on these topics, understanding of which is fundamental to the evolution of global markets.”

Hyperliquid stated that it is committed to the advancement of the decentralized finance (DeFi) space. The team also claimed that its implementation “exemplifies how core DeFi principles can be put into practice to enhance market efficiency, market integrity, and user protection.”

Source: Hyperliquid

CFTC’s 24/7 derivatives plans

Hyperliquid’s remarks follow CFTC Commissioner Summer Mersinger recently saying that crypto perpetual futures contracts could receive regulatory approval in the US “very soon.” Perpetual crypto futures “can come to market now,” she said.

“We’re seeing some applications, and I believe we’ll see some of those products trading live very soon,” Mersinger said. She also added that it would be “great to get that trading back onshore in the United States.”

Perpetual futures contracts are a type of derivative that allows traders to speculate on the price of a crypto asset without owning it, similar to traditional futures, but with no expiration date. Such contracts remain open indefinitely and are kept in line with the spot market price using a funding rate mechanism, where payments are exchanged between long and short positions at regular intervals.

Crypto derivatives are a busy area

The crypto derivatives market has recently been swarming with announcements of product launches, acquisitions and regulatory developments. Coinbase CEO Brian Armstrong recently said the exchange will continue to look for merger and acquisition opportunities after acquiring crypto derivatives platform Deribit.

Armstrong’s remarks followed Coinbase’s agreement to acquire Deribit, one of the world’s biggest crypto derivatives trading platforms. Europe is seeing just as much hustle in the crypto derivatives industry as the Americas are.

Major crypto exchange Gemini has also recently received regulatory approval to expand crypto derivatives trading across Europe. Elsewhere, DeFi platform Synthetix will also venture further into crypto derivatives, with plans to re-acquire the crypto options platform Derive.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story