Bitcoin dropped to fresh monthly lows on April 3 as Wall Street opened under pressure, with US unemployment figures adding to the strain on risk assets.
Bitcoin Gives Up Early April Gains as Markets Tumble
Data from TradingView showed BTC/USD dipping below $82,000 for the first time this month.
Bitcoin initially surged to $88,580 following the US government’s announcement of new trade tariffs, but that rally was short-lived as the stronger-than-expected measures unsettled markets.
The impact extended to equities, with the S&P 500 tumbling over 4% at the time of writing.
“Today’s -3.7% drop puts the S&P 500 on track for its biggest single-day decline since the 2020 pandemic crash,” noted The Kobeissi Letter on X.
“Since the after-hours peak at 4:25 PM ET yesterday, the S&P 500 has erased nearly $3 TRILLION in market cap.”
Meanwhile, fresh US labor market data showed jobless claims coming in lower than forecast—219,000 versus the expected 228,000—according to the US Department of Labor (DoL).
“The previous week’s figure was revised up slightly from 224,000 to 225,000, with the 4-week moving average dropping by 1,250 to 223,000,” an official statement detailed.
Stronger employment figures often weigh on risk assets, as they suggest the Federal Reserve can maintain a tighter monetary policy for longer.
Despite this, CME Group’s FedWatch Tool continued to indicate that traders expect an interest rate cut at the Federal Open Market Committee (FOMC) meeting in June.
“As recession risks grow, markets believe the Fed may have no choice but to cut rates as early as next month,” Kobeissi added.
BTC Price Faces Further Downside Risks
Bitcoin’s price struggled to hold ground, with $80,000 support coming under pressure.
“Stair step up, then elevator down,” trader Roman commented on X regarding the latest price movement.
Market analyst Byzantine General observed an increase in short positions across key crypto trading pairs, suggesting that market conditions are likely to remain challenging.
“I wouldn’t be surprised to see a stop hunt below the local lows before a squeeze on shorts, followed by more choppy downward movement,” he told his X audience.
With ongoing tariff responses expected, Byzantine General suggested that any significant upside for Bitcoin could be limited.
Adding to the bearish sentiment, on-chain data from analytics firm Glassnode revealed that Bitcoin had formed a “death cross” involving two key moving averages (MAs).
“A new on-chain death cross has emerged. The 30-day volume-weighted BTC price has dropped below the 180-day, signaling weakening momentum,” Glassnode reported.
“Historically, this pattern has preceded bearish trends lasting between 3–6 months.”
Earlier this week, Glassnode also noted that recent speculative sell-offs had failed to reach the high volumes typically associated with major Bitcoin price peaks.
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