Bitcoin is trading around $61,100, down roughly 3% on the day and nearly 7% over the week, as a stronger-than-expected May jobs report pushed interest rate expectations higher and triggered a broad risk-off move across global markets.

Gold also sold off, dropping about 2% to below $4,200 per ounce. Both assets declined together, challenging the assumption that they typically diverge during macro stress events.

The catalyst was U.S. labor data showing 172,000 non-farm payrolls in May versus 130,000 expected, with April also revised higher to 214,000. The stronger readings reinforced the view that the Federal Reserve will delay rate cuts significantly, potentially into 2027, forcing markets to reprice liquidity conditions across risk assets.

Bitcoin and Gold Under Pressure from Rates

Stronger economic data reduces the need for monetary easing, lifting real yields and strengthening the U.S. dollar—conditions that typically weigh on 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 further inflation pressure and complicating the Federal Reserve’s policy path.

Federal Reserve Chair Kevin Warsh now faces a key decision at the June 17–18 FOMC meeting, where policy direction could either remain on hold with cautious guidance or shift toward tighter conditions if inflation risks intensify.

Cleveland Fed President Beth Hammack has already warned that action may be needed soon, while WSJ’s Nick Timiraos noted that the strong labor market has effectively removed expectations for near-term rate cuts.

Meanwhile, Bitcoin ETF flows continue to weaken. sFOX executive Diana Pires noted that while dip buyers have appeared, sustained institutional demand has not returned in meaningful size.

Ongoing outflows from U.S. spot Bitcoin ETFs, combined with Strategy’s first BTC sale since 2022, have further undermined the narrative of consistent institutional support that previously helped keep Bitcoin above $70,000.

Global markets are also under pressure. South Korea’s Kospi fell 6.3%, the MSCI Asia-Pacific index dropped 2.5% for its fourth loss in five sessions, and Nasdaq 100 futures declined 0.8%.

More than $500 million in bearish positions were liquidated, suggesting the earlier rebound was driven by short covering rather than fresh buying. Bitcoin’s brief move toward $62,500 failed to attract enough spot inflows to sustain momentum.

Bitcoin–Gold Correlation Becomes Unstable

The relationship between Bitcoin and gold remains inconsistent. While long-term rolling correlations have recently moved toward 0.6, CryptoQuant data shows that correlations can swing sharply negative, highlighting how sensitive both assets are to shifting macro conditions.

A dovish outcome from the June 17–18 FOMC could trigger a relief rally, but a more hawkish stance or rate hike signal could extend downside pressure.

Bitcoin Technical Outlook Weakens

Bitcoin is now trading near $61,146 and has broken below its February lows, a key support level that had underpinned the recent recovery structure. This marks its weakest point since mid-2024 and signals clear technical deterioration.

The $61,000–$62,000 zone had served as critical support for the broader bullish narrative. Losing it decisively puts the market in a more fragile position.

If selling continues, the next major support lies in the $55,000–$58,000 range, corresponding to a prior accumulation area from mid-2024.

While sharp declines often produce short-term relief rallies, those rebounds are likely to face heavy resistance unless stronger spot demand returns.

To stabilize, Bitcoin would need to reclaim $64,000–$65,000. A more meaningful recovery would only begin if $68,000 is retaken.

For now, the market remains in a clear breakdown phase, with sellers in control and buyers needing to rebuild structure before any sustained recovery can emerge.