Bitcoin Slips Below $80K Amid Divergence from US Equities
Bitcoin's momentum fizzled out on Tuesday as it slipped below $80,000. The cryptocurrency and gold prices fell in tandem, while US equities rose.
The $80,000 zone proved difficult for Bitcoin to reclaim as US trading hours showed a decline across both assets. Gold prices dropped nearly 2% to local lows of $4,605 per ounce.
US stocks moved inversely to gold and crypto last week, but this divergence continued into the current week. The S&P 500 and Nasdaq Composite Index posted modest daily gains of 0.2% and 0.5%, respectively.
The US Treasury announced bigger debt buyback operations to tame bond yields, which had hit heights not seen since January 2007 last week.
Commenting on the prospect of further bond-market interventions, The Kobeissi Letter suggested that interest-rate cuts were not an option in the current inflation environment. 'The reality is that the Fed cannot cut rates in this environment and the Trump Administration knows this,' it wrote.