West Texas Intermediate crude futures broke above $90 a barrel on September 2, posting a near 9% gain for the week. The climb in oil prices has lifted inflation expectations, narrowing the room for Federal Reserve rate cuts. At the same time, long-term government bond yields in advanced economies have kept climbing on fiscal concerns, with the 10-year U.S. Treasury yield jumping 10 basis points to 4.81%—the highest level since 2023—weighing on borrowing costs across the economy and dampening risk appetite in financial markets.

Under these pressures, the S&P 500 fell for a third straight session on Monday, touching a four-week low. Asian equities also weakened, with higher crude posing a macro risk for energy-importing nations. Gold has pulled back sharply from $4,700 an ounce to $4,300 in less than a week. Bitcoin, however, has shown relative resilience. After dropping about 3% to below $77,000 last Friday, the price has hovered in a narrow band between $76,000 and $80,000 without further downside.

Market analysts suggest that holding steady amid multiple headwinds sends a bullish signal. One interpretation is that the recent rise in bond yields stems from fiscal worries rather than strong economic growth, which actually boosts demand for hard assets like bitcoin that operate outside the traditional fiat financial system. Still, the U.S. dollar index rose nearly 1% last week to 99.67, extending its strength. Technical charts show the dollar index approaching a key bullish trendline that dates back to the 2011 low; a rebound at this support level could further stoke dollar demand. Historically, bitcoin and the dollar index have shown a negative correlation, meaning sustained dollar strength could pose a potential challenge for the cryptocurrency going forward.