Bitcoin Hits Low on CPI Fears as Gold Soars
Bitcoin fell to its lowest level in a week on August 11, slipping below $64,000 ahead of the U.S. consumer price index (CPI) release. The price drop was accompanied by a rise in gold prices, which reached a nine-week high at $4,435 an ounce.
According to CryptoQuant's chief executive officer Ki Young Ju, the 90-day moving correlation between bitcoin and gold has returned to 'digital-gold-era levels.' This suggests that investors are seeking safe-haven assets amid uncertainty surrounding global events.
The cryptocurrency market has been affected by concerns over a war between the United States and Iran, as well as a stalemate over reopening oil shipping routes through the Strait of Hormuz. International oil prices surged 5%, while U.S. stocks moved sideways with no clear direction.