Gold first – Bitcoin’s sharp drop from $ 50K is linked to a stronger dollar, gold correlates

Bitcoin (BTC) and spots gold (XAU) have been below their key psychological levels since the 8th century, because the stronger US dollar (USD) caused the investor’s interest in the assets.

Smnn briefly BTC/USD decreased by 5.27% to its intraday low of 44,423 USD, but st of these losses gained back after restoring $ 45,000-46,000 psma as support. This darkened the bar as an extension of its continued rebound from $ 42,830, a level that reached to have sweat, which during the day fell by more than 18%.

Hour chart BTC/USD, source: TradingView.com

Massive for sale Bitcoinu coincided with a markedly similar but changed decline in the competitive market gold. Concrete, metal tracks v to have suffered its worst daily decline in the last month, when spot rates XAU /USD fell below $ 1,800 after -1.37% intraday movement.

XAU Hour Graph /USD, source: TradingView.com

Gold began its decline in the early hours of the hour, while Bitcoin slightly corrected during the morning. The biggest red bag saw how to Bitcoinu, Yes for gold soubn after 16:00. Bitcoin prodlal mnoghem hlub propad ne gold, but subsequently its price of the walls was pulled back to consolidate both assets, piem gold during the public, opt continued its downtrend and this morning rebounded and returned to $ 1,800.

Concrete kryptomna she fell under thou oversized bch long positions. Data from ByBt showed that in the Bitcoin options market, the $ 3.68 billion longs were liquidated within 24 hours, the largest liquidation since June.

Disposal Bitcoinu within 24 hours, source: ByBt.com

Automated liquidation caused put sales in the market with Bitcoinem, because traders were forced to sell St. BTC podly to cover svch mar.

It is worth noting that e nhl drop in prices Bitcoinu a gold coincided with the sharp number of the American index dollar (DXY).

Index, kter m slu dollar vi koi nejvtch nrodnch mn, v to have increased by 0.41% to 92.53 and in the course of the session then continued to rise to stabilize its intraday high to 92.73.

DXY clock chart, source: TradingView.com

DXY has moved away from its low lows, benefiting from the US Treasury Department’s growing revenue before selling its government debt this week, including $ 58 billion in years. bonds, $ 38 billion in 10 years bonds and $ 24 billion in 30 years bonds.

Index entry in 10letch sttnch bond of the US Department of the Treasury, which at first was around 1.32% to have rose to 1.377%.

10 years import sttnho bond USA, source: TradingView.com

Shift insight and into the meeting Fedu

Rising deposits usually compete for financial flows as a safe toit against Bitcoinu a gold. But even the last rise remains below the 5.4% core in July inflac, thus creating unsustainable safe food, while there are attractive lines against rising consumer prices.

But since the Federal Reserve System (Fed) meets at the end of this year to launch a reduction in its new purchase of assets of more than $ 120 billion, some analysts believe that revenues bond should continue to recover. On the other hand, they would provide dollar b fuse.

Shaun Osborne, chief FX stratg at Scotiabank in Toronto, told CNBC:

We think that the Federal Reserve System is likely to move towards a gradual decline by the end of this year, American economy is likely to be relatively strong, as well as less insights dollar, but weakened dollar is probably a purchase.

For a kind page threat that the slc delta variant of Covid-19 weakens prospects for recovery. That would force you Fed maintain its tracks nkup program bond, and thus hit the reins of the bond i dollar.

As a result, insight looks out Bitcoinu a gold shift. It is expected that the meeting of the Federal Open Market Committee at the end of this month will shed more light on the full scope of dream shopping. Fedu. Until then, the bag is not sure.

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