It was a weekend like few others we’ve seen in some time. The amount of news flow in the macroeconomic realm has led volatility to surge, with the VIX surpassing 20 for the first time since November. This dynamic has led to sharp moves not only in equity markets but also in the prices of Bitcoin (BTC 3.59%), gold, commodities, and other assets.

Bitcoin

Today’s Change

(-3.59%) $-3338.09

Current Price

$89569.00

As of Tuesday at 11:30 a.m. ET, the price of Bitcoin has declined 4.8% since equity markets closed on Friday. That’s a significant move, made even more significant by the fact that Bitcoin briefly dipped below $90,000 again earlier today. Roughly one week ago, Bitcoin looked poised to move back toward the six-digit level, so this is certainly disappointing for investors.

Let’s dive into what’s moving the needle with the world’s largest cryptocurrency today.

Bitcoin is moving in tandem with equities, not gold

Source: Getty Images.

Bitcoin’s price action this weekend mirrors heavy selling pressure in both U.S. equity and bond markets, as a “sell America” trade appears to be brewing, tied to new rhetoric from Donald Trump doubling down on his pressure to acquire Greenland. Increased tariff fears on European allies tied to President Trump’s bid to purchase Greenland have stoked both domestic inflation fears and concerns that international buyers of U.S. equities and debt may step back.

What that ultimately means for cryptocurrencies remains to be seen. But the reality is that crypto is a global game, with most of the capital flowing within this sector coming from outside of the U.S. Any sort of indication investors receive that capital flows may slow could have a material impact on tokens like Bitcoin, which require billions of dollars of inflows (given its market capitalization of nearly $2 trillion) to continue to trend higher.

Michael Saylor and others have used this dip as a buying opportunity, with Strategy (MSTR 7.77%) reportedly adding more than $2 billion to its Bitcoin hoard over the past week. That’s good for the largest purchase from this Bitcoin treasury company in seven months, and could signal that other Bitcoin bulls may follow suit.

We’ll have to see what ultimately comes of this ongoing U.S.-Greenland debacle. I’m not sure how this will impact the long-term investment thesis for Bitcoin, or whether it is just a short-term blip. However, I would say that those holding Bitcoin may want to pay closer attention to the macro environment right now, as higher volatility isn’t a friend to Bitcoin in the near term.