An attempted rally in Bitcoin early Thursday was met by steady selling during US trading hours, driving the price back below key support levels. After briefly trading above $113,000, BTC/USD retreated to around $111,800, down approximately 0.7% over the past 24 hours. Ether and XRP saw declines of 2.1% and 1.4%, respectively, reflecting broader risk-off sentiment amid macroeconomic uncertainty.
In contrast, gold extended its recent ascent, climbing 0.8% to $3,477 per ounce and drawing within striking distance of its record high of $3,534 set earlier this month. Lower interest rate expectations and a weakening US dollar have underpinned precious metals, while digital assets have struggled to attract fresh inflows.
August has marked a stark divergence in performance: gold is up nearly 4% this month even as Bitcoin slid 5.2%. Market participants cite ongoing Federal Reserve rate-cut speculation as a key driver for gold’s outperformance. Traders now anticipate one or two additional dovish Fed appointments in September, which could prolong the precious metal rally.
Crypto and traditional market correlations remain in focus, with Bitcoin’s recent weakness highlighting investors’ sensitivity to broader financial conditions. Some analysts warn that a sustained gold rally without parallel support for digital assets may signal a rotation of risk capital toward established safe-haven assets.
Looking ahead, the final quarter of the year will test Bitcoin’s resilience amid renewed Fed policy signals, geopolitical tensions and institutional demand for crypto exposure. Observers note that while gold and crypto share the “digital versus physical” narrative, divergent performance in August underscores their evolving market dynamics.
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