Bitcoin Outperforms Gold as Fed Rate Hike Expectations Ease

New York Fed President John Williams said that the Federal Reserve has time to assess additional data after the rate increase in September, which pushed expectations for the October hike lower. The two-year Treasury yield dropped to around 4.88% as a result.

The gold price struggled to recover from its sharp decline on Monday, rebounding only to $4,187 on Tuesday. A strong dollar and high Treasury yields limited demand for gold, causing it to remain stagnant. The market will now watch the US PCE inflation data on Wednesday and the jobs data on Friday.

The ratio between Bitcoin and gold has shown a recovery from its 13 support region, indicating that Bitcoin has regained purchasing power against gold. However, this rebound is still facing key resistance at 23, which could indicate further volatility in the market. The emergence of an ascending broadening wedge pattern highlights strong volatility in the Bitcoin market.