{"id":40767,"date":"2025-09-03T11:56:07","date_gmt":"2025-09-03T11:56:07","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/40767\/"},"modified":"2025-09-03T11:56:07","modified_gmt":"2025-09-03T11:56:07","slug":"new-gold-record-fires-warning-shot-for-bitcoin-analysts-say-dl-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/40767\/","title":{"rendered":"New gold record fires warning shot for Bitcoin, analysts say \u2013 DL News"},"content":{"rendered":"<ul class=\"list-outside pl-8\">\n<li>Gold smashed a new all-time high, extending a 34% rally this year.<\/li>\n<li>Fed rate cut bets and geopolitical turbulence drive safe-haven demand.<\/li>\n<li>Bitcoin is still off more than 10% from its high.<\/li>\n<\/ul>\n<p class=\"puppeteer-article-text-type-element\">Gold\u2019s eye-watering rally is raising serious questions about how Bitcoin \u2014 and crypto more broadly \u2014 will behave in such a cautious macro environment. <\/p>\n<p class=\"puppeteer-article-text-type-element\">That\u2019s because, as gold recorded a new high above $3,500 on Wednesday, Bitcoin is more than 10% off its record high of $124,500 touched in August. <\/p>\n<p class=\"puppeteer-article-text-type-element\">US President Donald Trump\u2019s bellicose trade war, ballooning debt levels, and concerns that the Federal Reserve\u2019s independence is under threat, has sent investors looking for answers.<\/p>\n<p class=\"puppeteer-article-text-type-element\">And the $2.2 trillion cryptocurrency doesn\u2019t appear to be a top choice.<\/p>\n<p><a name=\"vkrkuh7aha9i4nvt\"\/>Bitcoin&#8217;s rally this year has come to a cool as investors weigh their options. Source: DefiLlama. <\/p>\n<p class=\"puppeteer-article-text-type-element\">While Bitcoin has a reputation among crypto pundits as a safe-haven asset, the correlation between the top cryptocurrency and gold has decreased over the past few weeks, Illia Otychenko, lead analyst at crypto exchange CEX.IO, told DL News. <\/p>\n<p class=\"puppeteer-article-text-type-element\">\u201cBitcoin\u2019s price has stalled under increased selling pressure from short-term holders, while gold has continued climbing amid uncertainty around what may happen next after a potential rate cut this month,\u201d Otychenko said. <\/p>\n<p class=\"puppeteer-article-text-type-element\">\u201cThis points to a market leaning toward greater risk aversion.\u201d<\/p>\n<p>Muted response<\/p>\n<p class=\"puppeteer-article-text-type-element\">Indeed, other analysts suggest the recent divergence between the two assets makes crypto look a whole lot more like a traditional stock. <\/p>\n<p class=\"puppeteer-article-text-type-element\">\u201cBitcoin\u2019s muted response to gold\u2019s breakout may suggest that, for now, it is behaving less like a hedge and more like a high-beta risk asset,\u201d Joel Kruger, a market strategist at LMAX Group.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Still, there are signs that Bitcoin is also benefiting from investors\u2019 appetite for safe-haven assets.<\/p>\n<p>Investor rotations<\/p>\n<p class=\"puppeteer-article-text-type-element\">Bitcoin exchange-traded funds have seen $774 million in inflows over the past week, tracking platform SoSoValue <a href=\"https:\/\/sosovalue.com\/assets\/etf\/us-btc-spot\" rel=\" nofollow noopener\" target=\"_blank\">shows<\/a>, a big contrast to the prior week when the products recorded over $1 billion in <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/will-bitcoin-reclaim-its-record-price-before-august-29\/\" rel=\"nofollow noopener\" target=\"_blank\">outflows<\/a>.<\/p>\n<p class=\"puppeteer-article-text-type-element\">At the same time, US spot Ethereum ETFs saw outflows of $135 million over the past week. <\/p>\n<p class=\"puppeteer-article-text-type-element\">Ethereum doesn\u2019t have the same reputation as a safe-haven asset.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Elsewhere Strategy, the largest corporate holder of Bitcoin, disclosed on September 2 that it had acquired another 4,048 Bitcoin for about $449.3 million at an average price of $110,981.<\/p>\n<p class=\"puppeteer-article-text-type-element\">That takes the firm\u2019s total holdings to 636,505 Bitcoin, purchased for nearly $47 billion at an average price of $73,765. At current levels, the pile is worth close to $70 billion.<\/p>\n<p>Fed meeting<\/p>\n<p class=\"puppeteer-article-text-type-element\">Next, investors eyes\u2019 are all on the upcoming Federal Reserve meeting.<\/p>\n<p class=\"puppeteer-article-text-type-element\">The US central bank is scheduled to hold the next Open Market Committee meeting on September 16, with markets anticipating a 89.7% chance of a rate cut, the <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" rel=\" nofollow noopener\" target=\"_blank\">CME FedWatch tool<\/a> shows.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Lower rates tend to boost risk assets by reducing borrowing costs and pushing investors out of bonds.<\/p>\n<p class=\"puppeteer-article-text-type-element\">\u201cExpectations of U.S. rate cuts continues to support risk assets, with near-term focus on labor market data as a key catalyst,\u201d Kruger said. <\/p>\n<p class=\"puppeteer-article-text-type-element\">\u201cIt will be important to keep an eye on the US equity market, which has been showing signs of weakness. Any additional strain on this front could trickle down into crypto assets.\u201d<\/p>\n<p>Crypto market movers <\/p>\n<ul class=\"\">\n<li>Bitcoin is up 0.9% over the past 24 hours to trade at $111,103.<\/li>\n<li>Ethereum is down 1.6% to trade at $4,321.<\/li>\n<\/ul>\n<p>What we\u2019re reading<\/p>\n<p class=\"puppeteer-article-text-type-element\">Lance Datskoluo is DL News\u2019 Europe-based markets correspondent. Got a tip? Email at <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/gold-record-send-bullish-signal-for-bitcoin-and-crypto-analysts-say\/mailto:lance@dlnews.com\" rel=\" nofollow noopener\" target=\"_blank\">lance@dlnews.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Gold smashed a new all-time high, extending a 34% rally this year. Fed rate cut bets and geopolitical&hellip;\n","protected":false},"author":2,"featured_media":40768,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[214,79,18,19,17,188],"class_list":{"0":"post-40767","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bitcoin","9":"tag-business","10":"tag-eire","11":"tag-ie","12":"tag-ireland","13":"tag-markets"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/40767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=40767"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/40767\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/40768"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=40767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=40767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=40767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}