Dollar Debasement Trade Ties Gold and Bitcoin's Struggles Together

Gold and Bitcoin's recent struggles are closely tied to the dollar debasement trade, where investors bet on the US dollar losing value. According to Fawad Razaqzada, a Market Analyst at StoneX Media, both assets have been influenced by this trend. However, when the dollar stops falling, the thesis that supports them loses its foundation.

Rising bond yields are another factor contributing to their weakness. Higher yields make it more expensive for investors to hold non-yielding assets like gold and Bitcoin. This is especially true since gold carries additional costs such as storage and insurance, making it even harder to justify holding onto it when yields climb.