Bitcoin and gold both moved lower on Wednesday as markets priced in a higher-rate outlook that hit assets with no yield. Bitcoin changed hands at $61,233, down 3% over 24 hours and 6.9% on the week, while gold fell 2% to below $4,200 an ounce.
Major cryptocurrencies tracked the broader risk-off move
CoinDesk data showed ETH down 3.4% to $1,625, SOL off 4.1% to $64.24, and XRP lower by 4.3% to $1.12. BNB and DOGE each lost less than 3%. Among larger tokens, Hyperliquid’s HYPE remained the weakest, falling 10.2% on the day and 21.3% over the week to $55.52.
Stocks, oil, and Treasury yields all reflected the same macro trade
Pressure was visible well beyond crypto. South Korea’s Kospi dropped 6.3%, leading a 2.5% decline in MSCI’s broad Asia-Pacific equity gauge and marking its fourth loss in five days. Nasdaq 100 futures pointed 0.8% lower after a volatile Wall Street session. Brent crude held near $92 a barrel, while the 10-year Treasury yield climbed to 4.54%.
Bitcoin and gold do not often fall in tandem, but both are treated as stores of value that do not pay interest. That leaves them vulnerable when traders increase bets on higher policy rates or expect rates to stay elevated for longer. The next catalyst in focus was Wednesday’s U.S. inflation report, which could reinforce that view.
The latest rebound was described as short covering, not new demand
The article said the bounce that lasted into Monday looked more like a short squeeze than fresh buying. More than $500 million in bearish positions were liquidated, the largest such figure since April. Some market participants said spot demand never really arrived behind that move.
Diana Pires, chief business officer at sFOX, said buyers did step in after the drop, but spot demand had not returned in a meaningful way. She pointed to continued outflows from U.S. spot bitcoin ETFs as a sign that institutional money remained cautious. If new demand is not broad enough to absorb selling, rallies tend to fade.
Traders were watching whether bitcoin could hold up through the U.S. inflation print or keep moving in step with the Nasdaq. If gold stabilizes while bitcoin continues to slide, the argument for bitcoin as a macro hedge would come under added pressure.