Bitcoin Dropped Below $64,000 as Investors Flock to Gold
Bitcoin's price dropped to a one-week low on Tuesday as investors showed a strong appetite for gold, pushing its price to nine-week highs.
The precious metal rose to $4,435 per ounce, its highest level since June 5. Chinese demand for gold has been increasing, with August data showing a surge in appetites for the metal.
However, this increase in gold prices had a negative impact on Bitcoin's price, which fell below $64,000. Data from TradingView showed BTC/USD abandoning its low-timeframe rebound and dropping 1.5% on Monday due to concerns over the US-Iran war and the latest impasse over the reopening of the Strait of Hormuz oil route.
According to The Kobeissi Letter, retail investors are piling into gold ETFs, with the NYSE ARCA-traded SPDR Gold Shares (GLD) exchange-traded fund attracting daily retail inflows of $50 million on August 5, the highest single-day tally since mid-March.
The biggest crypto retained its positive correlation to gold on a 90-day rolling basis, data from onchain analytics platform CryptoQuant showed. Market participants are monitoring the zone below $66,000 as rangebound behavior continued, with trader and analyst Michaël van de Poppe suggesting that a breakout above $65,800 could lead to a price increase to $73,000.