Bitcoin’s price dropped 10% from $64,190 to $57,800 over 10 days ending September 3, despite the S&P 500 nearing its all-time high and gold approaching its peak.

The decline is attributed to recession concerns and shifting focus to U.S. monetary policy. Bitcoin’s future bullish outlook depends on anticipated Federal Reserve rate cuts.

In addition, the 2-year Treasury yield fell, indicating lower returns on safe assets like government debt amid a slowing job market.

July’s inflation rate slowed to 2.9%, but rising jobless claims could affect interest rate cuts.

Bitcoin has underperformed compared to other markets, partly due to $480 million in net outflows from spot Bitcoin ETFs and concerns over miner profitability, Coin Telegraph has reported.

Miners’ holdings remain high, but falling hashrate earnings and declining Bitcoin prices could lead to sell-offs.

Written by B.C. Begley