Bitcoin saw a brief decline on Thursday, falling below $110,000 as investors moved towards government bonds and gold in response to a weaker-than-expected US labor market report. This trend, fueled by recession fears, has raised doubts about Bitcoin’s ability to sustain its recent price surge. While equities responded positively to the potential for lower interest rates from the Federal Reserve, cryptocurrencies faced renewed pressure. 2-year Treasury yields dropped to 3.60%, signaling investors’ shift towards safer assets, with gold reaching a new all-time high in the process. This volatility is further reflected in Bitcoin’s correlation with tech stocks, which has remained at 72% over the past 60 days. Despite this downward trend, some analysts see potential for Bitcoin to rebound if Strategy (MSTR) is included in the S&P 500 index, potentially driving further institutional investment. Meanwhile, rising demand for short-term US government bonds, a signal of increased risk aversion, may also limit the upward momentum for Bitcoin, which is currently highly correlated with tech stock performance. Though current trends indicate a temporary dip, experts believe that sustained demand for Bitcoin could still emerge as investors look to hedge against economic volatility.