Gold reversed all August gains after Fed hawkish signals, while Bitcoin held above $77K despite pullback from macro volatility.
Macro & Markets ·
The US Treasury Department's August 19 announcement to double liquidity-support buybacks for longer-dated government debt to $4 billion initially drove gold and Bitcoin higher, with gold reaching $4,700 per ounce and Bitcoin climbing to $81,500. However, Federal Reserve Chairman Kevin Warsh's hawkish speech at Jackson Hole shifted market sentiment toward expectations of rate hikes, prompting a sharp reversal. Gold has now fallen to $4,300, erasing its entire August advance and dropping below where it started the month, while Bitcoin retreated to $77,000 but remains 20% above its pre-rally level of $64,000. Spot Bitcoin ETF inflows have also slowed compared to outflows in recent business days, according to analysis at https://cryptopotato.com/gold-just-erased-all-its-august-gains-bitcoin-is-holding-up-better-at-77k/.