Bitcoin Defies Market Conditions as Gold Fails to Rally
The past two weeks have been challenging for non-yielding assets like gold and Bitcoin. Treasury yields are surging, and stocks have held up relatively well, but this has not provided a reason for buyers to hit the bid in markets like XAU/USD or BTC/USD.
However, despite the unfavorable environment, Bitcoin set a fresh high earlier this week, while gold prices remain on their back foot. This disparity is notable, especially considering that gold topped shortly after the breakout triggered by the larger Treasury buyback announcement from Scott Bessent, whereas Bitcoin has continued to power higher.
The rally in Bitcoin has been ongoing for over a month, following the breakout. Meanwhile, gold has drawn down as US yields surge and continue their run today, accompanied by a more hawkish FOMC. Gold is now testing the FOMC lows, while Bitcoin is testing a major spot of support.