Bitcoin Price Drops as Gold Reaches Nine-Week High

The price of Bitcoin (BTC) has dropped to a one-week low as investors' appetite for gold continues to grow, pushing the precious metal to its highest level since June.

On Tuesday, gold reached $4,435 per ounce, sending the value of Bitcoin down by 1.5% and below $64,000. This marks a significant drop from Monday's price, which was affected by concerns over the US-Iran war and the latest impasse over the reopening of the Strait of Hormuz oil route.

The current correlation between Bitcoin and gold is still in place, with the two assets moving together on a 90-day rolling basis. This is evident from data provided by CryptoQuant, which shows that the positive correlation between the two assets has returned to levels seen during the 'digital-gold-era'.

As of now, Bitcoin's price action is being held back by a long-term trend line near $66,000, with market participants waiting for the outcome of the US Consumer Price Index (CPI) print for July. The CPI release has historically had an impact on crypto markets, and traders are closely monitoring the situation.