Bitcoin (BTC) experienced a price drop to $88,900, losing the $90,000 level, amid macroeconomic uncertainty and a reversal in market sentiment. This coincided with outflows from spot Bitcoin ETFs over the past 12 trading days. Rising Treasury yields and a more hawkish Federal Reserve stance have increased the opportunity cost of holding Bitcoin and drawn institutional investors towards safer options like government bonds. These factors have tightened financial conditions and reduced liquidity in speculative markets. Bitcoin's price trajectory remains tied to US equities, particularly the S&P 500, but it has shown relative resilience compared to traditional equities. Optimism over potential regulatory changes in the crypto market has also helped bolster confidence in Bitcoin. Overall, the evolving macroeconomic backdrop suggests a challenging road ahead for risk assets, but Bitcoin may continue to attract investor interest as regulatory clarity improves.



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