- Bitcoin’s rally attempt fails as it retreats to below 112,000 dollars.
- Gold continues its quiet but powerful climb, nearing its all-time high.
- In August, gold is up nearly 4 percent while Bitcoin has fallen over 5 percent.
A hopeful rally in the cryptocurrency market was decisively crushed on Thursday, as steady selling pressure throughout the US trading session sent prices into a familiar retreat.
The failed bounce underscores a growing sense of fatigue in the digital asset space and throws a stark and revealing light on the silent, powerful ascent of its analog rival: gold.
After a brief flirtation with the 113,000 dollar level, Bitcoin (BTC) was beaten back, sinking to 111,800 late in the session for a loss of 0.7 percent over the past 24 hours.
The selling was even more pronounced in other major tokens, with Ether (ETH) and XRP shedding a more sizable 2.1 percent and 1.4 percent, respectively.
The one notable bright spot in a sea of red was Solana’s SOL, which managed to buck the trend with a respectable 3.1 percent gain.
A silent ascent to the summit
While the crypto market grapples with its own inertia, a different story is unfolding in the world of precious metals.
Quietly, but with unshakable conviction, gold has been on the rise. The yellow metal added another 0.8 percent on Thursday, climbing to 3,477 dollars per ounce.
This puts the safe-haven asset just a few dollars shy of the record high of 3,534 dollars it touched earlier this month.
The performance in August paints an even more dramatic picture of this great divergence: while Bitcoin has slid 5.2 percent, gold has rallied by nearly 4 percent.
The great disconnect
This decoupling is the great mystery currently haunting the market.
The very same macroeconomic tailwinds that are propelling gold higher—namely, the prospect of lower interest rates and a weaker US dollar—are conspicuously failing to ignite any significant bid for “digital gold.”
The fundamental case for Bitcoin as an inflation hedge and a store of value is being put to a severe test, and for now, it is failing.
A September showdown looms
The stage is now set for a potentially volatile final four months of the year.
The resumption of Federal Reserve rate cuts appears to be firmly on the table for September, a move that could be amplified by President Trump’s appointment of one or possibly two new, likely dovish, members to the Fed’s board.
As these powerful forces converge, the market is watching to see if Bitcoin can finally catch the golden tailwind or if its strange and troubling disconnect is a sign of a deeper malaise.
Source: https://coinjournal.net/news/bitcoin-remains-under-pressure-as-gold-targets-a-new-all-time-high/
