itcoin is back under $90,000, sliding nearly 5% this week as macro forces tighten their grip. What looked like a brief recovery turned into another reminder: BTC is trading like a high-beta risk asset, not digital gold.
Mid-week, markets caught a short burst of optimism after Trump’s Davos remarks cooled tariff tensions with Europe. That sparked a quick risk-on bounce, pushing BTC back above $89K. But the relief didn’t last.
🌍 Macro volatility is back in control.
Rising global bond yields — especially Japan’s 10-year yield hitting levels not seen since the late 1990s — triggered a risk-off rotation. When yields surge, liquidity tightens. And when liquidity tightens, leveraged positions get unwound fast.
That pressure hits crypto first. Always.
📉 Stocks pull back
🪙 Crypto drops harder
🥇 Gold & silver rally as safe havens
Bitcoin is no longer moving independently it’s reacting to rates, geopolitics, and cross-market stress.
But the real weight this week? Institutional money is stepping back.
Spot Bitcoin ETFs in the U.S. saw $1.22 BILLION in outflows through Thursday — the biggest weekly withdrawal wave since November. That’s not retail panic. That’s big capital reducing exposure.
Less ETF demand = less structural buying support.
Put it together and the picture is clear:
⚠️ Liquidity tightening
⚠️ Bond yields rising
⚠️ Institutional flows turning negative
BTC isn’t crashing randomly. It’s responding to a global shift in capital flows.
Until liquidity conditions improve, rallies may stay short-lived and volatility stays king.
