Bitcoin Edges Out Gold Amid Rate Hike Expectations
Bitcoin's price has been holding steady above $80k despite rate hike expectations from the Federal Reserve, while gold has pulled back more aggressively. The recent move in Bitcoin is reminiscent of August 2020 when it struggled to break above $12k, only to see a massive surge later that year.
In contrast, gold's breakout last month following the July FOMC rate decision was met with a sharp pullback, with its price currently finding resistance at the 38.2% retracement of its recent move. Bitcoin, on the other hand, has held support at the 23.6% retracement.
With the US Treasury Secretary and President Donald Trump advocating for 'growing their way out of debt', more printing and less prudence are expected in the market, which may lead to a rally in gold and a pullback in Bitcoin.