Gold Rallies as Inflation Fears Ease, but Bitcoin Remains Stuck

The July inflation report came in lower than expected at 3.4%, sparking a relief rally in markets. Gold rose 0.5% to $4,436 per ounce as investors sought safe-haven assets. However, Bitcoin's price barely budged, despite the fact that its most committed investors are now deeper in the red than the market as a whole, according to CryptoQuant.

Analysts at CryptoQuant noted that this pattern has marked every major cycle low for Bitcoin, but not yet the emotional and financial exhaustion that made previous bottoms unmistakable. Fidelity Digital Assets also tracks long-term holder supply, flagging it as one of the clearest reads on a forming bottom.

Peter Schiff, a well-known gold bull, argued that July's inflation number is still misleading because it reflects May's oil price crash, not July's rebound at the pump. If he is correct, the next CPI print could look far less friendly to markets.