Bitcoin Breaks Toward $97K as Gold Stumbles—Are Risk Assets Back in Control?
Wall Street Lift and Short Liquidations Propel Bitcoin to Two-Month Highs While Gold Loses Its Shine
Bitcoin began May with a sharp 3% surge, closing in on the psychologically crucial $97,000 level, its highest price since February 22. The rally came as gold slipped more than 8% from its April highs, raising eyebrows across financial markets as traditional safe havens falter and risk-on sentiment resurfaces.
Bitcoin Eyes Six Figures Amid Short Squeeze Pressure
On Bitstamp, BTC/USD hit $96,955 during early Wall Street trading. Fueled by gains in tech stocks, particularly Microsoft’s 10% jump, Bitcoin mirrored broader risk market optimism. Microsoft’s leap also secured its position as the most valuable public company in the world, further energizing bullish momentum.
Popular trader Daan Crypto Trades commented that equity markets, led by the S&P 500, may be completing a V-shaped recovery. In his analysis, reclaiming the .618 Fibonacci retracement zone suggests the bottom may be in — and Bitcoin remains closely tethered to equities in the short term.
“Even though Bitcoin has held up better recently, large moves by equities should still influence BTC & crypto. So watch this zone,” Daan advised.
Liquidity Clusters Suggest $97K Resistance May Hold — For Now
Market data from CoinGlass indicated a thickening wall of ask orders around $97,000, suggesting it may act as the next battleground for bulls and bears.
Traders are now watching this level closely as a potential point of rejection or breakthrough — a showdown that could define May’s early trajectory.
Gold Retreats as Recession Fears Rattle Markets
While Bitcoin gained, gold took a hit.
XAU/USD has dropped over 8% from its all-time highs in April, undermined by weak U.S. GDP data and renewed recession concerns. The poor growth figures have reignited calls for the Federal Reserve to ease monetary policy, potentially reviving liquidity for risk assets like Bitcoin — but putting pressure on gold and oil.
Michaël van de Poppe, a widely followed crypto analyst, shared a sober macro view on X:
“Bad macroeconomic data came along, through which the pressure on the FED is increasing to start the money printer again… Ultimately, good for risk-on assets. Short-term, bad for Gold.”
Macro Forces Tilt in Bitcoin’s Favor — But for How Long?
Despite economic uncertainty, Bitcoin’s resilience signals a shifting dynamic: investors are willing to bet on volatility again, even amid looming recession risks.
With equities, crypto, and risk assets pushing higher and gold stepping back, May may test whether Bitcoin can lead a new wave of bullish sentiment — or fall back as resistance tightens.
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