Bitcoin Drops Below $80K as Gold and Bond Yields Fall

Bitcoin failed to hold above $80,000 as gold prices cooled and US bond yields dropped. Key inflation data is coming this week.

Bitcoin just hit a wall. After climbing to a 14-week high of $81,265, the world's biggest cryptocurrency quickly slipped back down, falling as low as $78,111.

The $80,000 level has been a tough zone for Bitcoin. Traders had already flagged it as an area where many people want to sell, making it hard for the price to stay above it. When US trading hours began, both Bitcoin and gold started falling together.

Here are the key numbers:

Bitcoin (BTC): High of $81,265, then dropped to $78,111
Gold (XAU/USD): Fell nearly 2% to $4,605 per ounce
S&P 500 (index tracking 500 big US companies): up 0.2%
Nasdaq (index focused on tech companies): up 0.5%

Interestingly, US stocks moved in the opposite direction to gold and crypto — when crypto and gold went up last week, stocks fell, and now the reverse is happening.

Why does this matter? A big factor is US government bond yields (the interest the government pays to borrow money). The 30-year yield dropped below 5.2%, its lowest since early August. Last week these yields hit levels not seen since 2007, which is one reason crypto surged as investors looked for alternatives.

Experts point out that the Federal Reserve (the US central bank that sets interest rates) can't easily cut rates right now because inflation is still a concern. Lower rates usually help crypto by putting more money into markets, so this is a headwind for Bitcoin.

What's next? Two big events land this Wednesday:

PCE inflation data — the Fed's favorite measure of how fast prices are rising
Nvidia earnings — the giant chipmaker's results, which can shake up the whole tech and risk-asset market

Bottom line: Bitcoin's rally paused as gold and bond yields cooled. Traders are now watching inflation data and Nvidia's results, which could spark the next big move in either direction.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/markets/bitcoin-slips-from-80k-as-gold-cools-with-falling-us-bond-yields?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound