Bitcoin continued to trade flat near $84,500 on Friday as U.S. markets observed Good Friday. With traditional markets offline, the crypto market provided a rare window into investor sentiment. The muted price action followed sharp moves in traditional assets on Thursday. Gold rose 1.74% fueled by dollar weakness and physical demand, while oil surged 5.04% due to U.S. sanctions on Iran. The dollar index fell 0.46% as the European Central Bank cut rates and U.S. political uncertainty grew.
Risk assets, including S&P 500 futures, dropped 1.1% as traders de-risked ahead of the long weekend. Judicial and executive tensions over central bank independence contributed to the sell-off. Bond prices were also adjusted with U.S. 10-year Treasury prices declining slightly. Chinese 10-year government bond prices remained stable as Beijing chose to hold Loan Prime Rates steady to maintain financial stability. The next release of the Fed’s preferred inflation gauge adds pressure to position ahead of the data.
Despite activity in traditional markets, Bitcoin’s response remained subdued. The digital asset held its level while gold, oil, and equities reacted to macroeconomic and geopolitical developments. Bitcoin has mostly outperformed macro flows in recent sessions, diverging from its correlation with equity futures. Traders are monitoring developments in the ongoing global trade war and repositioning may occur when CME futures and bond markets resume trading. Bitcoin serves as one of the few live indicators of sentiment in a macro environment shaped by policy signaling and cross-asset volatility.
In summary, Bitcoin traded flat near $84,500 on Friday amidst a holiday observed by U.S. markets. The crypto market offered insight into investor sentiment due to traditional markets being offline. Gold rose and oil surged on Thursday, driven by various factors, including U.S. sanctions on Iran. Policy and legal uncertainty impacted risk assets, leading to a sell-off in S&P 500 futures and adjustments in bond prices. Bitcoin remained rangebound despite volatility in other markets, reflecting reduced institutional volume and absence of a dominant catalyst. The digital asset diverged from traditional assets, highlighting its role as an indicator of sentiment in a changing macro environment shaped by policy signaling and volatility.
