Bitcoin News Today: Bitcoin Holds $111K but Risks Retest of $108K as Investors Favor Bonds and Gold

Key Takeaways:Bitcoin recovered to $111,000, but risk-off flows into bonds and gold highlight investor caution.Recession fears pushed U.S. 2-year Treasury yields down to 3.6%, their lowest in four months.Analysts warn BTC could still revisit $108,000 support if safe-haven demand persists.Bitcoin Stabilizes at $111K After Brief DipBitcoin (BTC) traded around $111,000 on Thursday, recovering from earlier lows near $109K as volatility picked up ahead of the U.S. nonfarm payrolls report.Despite the bounce, analysts caution that risk aversion continues to dominate markets, with traders seeking safety in government bonds and gold. This shift raises the possibility of BTC retesting its $108,000 support zone if selling pressure resumes.Bonds and Gold Outperform Amid Recession ConcernsYields on the U.S. 2-year Treasury note dropped to 3.60%, the lowest in four months, reflecting strong demand for safe-haven assets. Gold prices also surged to fresh record highs.The move came after:ADP data showed U.S. private payrolls rose by just 54,000 in August, down sharply from July’s 106,000.The ISM employment index signaled contraction in the labor market, reinforcing growth concerns.Markets now expect the Federal Reserve to cut rates by 25 bps at its Sept. 16–17 FOMC meeting, but skepticism remains about the Fed’s ability to sustain easing amid sticky inflation.Equities React Differently, Correlation With BTC Stays HighWhile equities gained on hopes of cheaper financing, cryptocurrencies lagged behind. BTC’s 60-day correlation with the Nasdaq sits at 72%, showing Bitcoin remains tied to tech-driven risk sentiment.Still, potential structural catalysts could shift the narrative. Analysts highlight the possibility of MicroStrategy (MSTR) entering the S&P 500, which would force index funds to gain indirect Bitcoin exposure — a move that could bolster legitimacy for the asset class.Short-Term Pressure, Long-Term TailwindsIn the near term, safe-haven demand for bonds and gold may keep Bitcoin under pressure. Unless BTC breaks convincingly above $112,000 resistance, the chance of a pullback toward $108,000 remains.Longer-term, fiscal imbalances and a weakening dollar outlook could provide a tailwind. Bank of America projects the euro will strengthen against the greenback by 2026, citing trade frictions and institutional credibility risks — a backdrop that could favor Bitcoin adoption, according to Cointelegraph.