Bitcoin Risks Retest of $108K as Investors Flock to Bonds and Gold
Safe-haven demand surges amid U.S. jobs slowdown, weighing on BTC momentum
Bitcoin (BTC) slipped below $110,000 on Thursday, trading at $111,343 as investors rotated into government bonds and gold following weak U.S. labor data. The flight to safety pushed gold to a record high and U.S. 2-year Treasury yields down to 3.60%, raising concerns that BTC could retest the $108,000 level.
While equities gained on expectations of a September Fed rate cut to 4.25%, cryptocurrencies faced renewed selling pressure. Analysts warn that Bitcoin’s close correlation with tech stocks — 72% over the past 60 days — leaves it vulnerable to broader risk-off sentiment.
Still, potential catalysts exist. The possible inclusion of MicroStrategy (MSTR) in the S&P 500 could boost institutional credibility for the asset class. Bank of America analysts also note that fiscal imbalances and trade frictions could weaken the U.S. dollar by 2026, historically supportive of Bitcoin.
For now, risk aversion may drag BTC toward $108,000, but strong demand for Treasurys should not be seen as a long-term bearish signal for crypto.