{"id":336375,"date":"2021-09-08T15:32:39","date_gmt":"2021-09-08T12:32:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoins-sharp-fall-from-50k-linked-to-stronger-us-dollar-gold-correlation-shows\/"},"modified":"2021-09-08T15:32:39","modified_gmt":"2021-09-08T12:32:39","slug":"bitcoins-sharp-fall-from-50k-linked-to-stronger-us-dollar-gold-correlation-shows","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoins-sharp-fall-from-50k-linked-to-stronger-us-dollar-gold-correlation-shows\/","title":{"rendered":"# Bitcoin\u2019s sharp fall from $50K linked to stronger US dollar, gold \u2014 Correlation shows"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26b6eed153b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26b6eed153b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-sharp-fall-from-50k-linked-to-stronger-us-dollar-gold-correlation-shows\/#Is_the_US_dollar_responsible_for_the_big_drop\" >Is the U.S. dollar responsible for the big drop?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-sharp-fall-from-50k-linked-to-stronger-us-dollar-gold-correlation-shows\/#Mixed_outlook_until_Fed_meeting\" >Mixed outlook until Fed meeting<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin\u2019s sharp fall from $50K linked to stronger US dollar, gold \u2014 Correlation shows <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) and spot gold hovered below their key psychological levels on Wednesday as a stronger United States dollar weighed on investors\u2019 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>etite for hedging assets.<\/p>\n<p>The BTC\/USD exchange rate dropped 5.27% to its intraday low of $44,423 but recovered a portion of those losses after reclaiming the $45,000\u201346,000 range as support. The pair\u2019s recovery also came as an extension to its ongoing rebound from $42,830, a level it reached on Tuesday after falling by more than 18% in the session.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/c2e8f40f-041c-4580-b3aa-f904b7cc3130.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD hourly chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Bitcoin\u2019s massive sell-off coincided with a strikingly similar but dwarfed decline in the rivaling gold market. In detail, the precious metal suffered its worst daily drop in a month on Tuesday as spot XAU\/USD rates fell below $1,800 following a minus 1.37% intraday move.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/999aef46-6609-41d4-b0c4-3730dc8d9a99.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>XAU\/USD hourly chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The large red hourly candle on gold and Bitcoin charts appeared between 10:00 and 11:00 UTC. However, the precious metal consolidated sideways after the big decline in contrast to Bitcoin that extended its downtrend.<\/p>\n<p>In detail, the cryptocurrency crumbled under the weight of excessively leveraged bullish bets. Bybt data showed that about $3.68 billion worth of longs in the Bitcoin options market got liquidated in the last 24 hours, marking it the largest liquidation since June.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/1378ed61-dea8-4835-9625-4e8f10e9d058.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin liquidations in the past 24 hours. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>Automated liquidations caused additional selloffs in the Bitcoin market, as traders were forced to sell their BTC holdings to cover their margin calls.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_US_dollar_responsible_for_the_big_drop\"><\/span>Is the U.S. dollar responsible for the big drop?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Worth noting, the sudden drop in Bitcoin and gold prices coincided with a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.marketwatch.com\/story\/gold-futures-set-for-sharpest-daily-tumble-in-a-month-as-treasury-yields-and-u-s-dollar-rise-11631016789\">sharp spike in the U.S. dollar index<\/a> (DXY).<\/p>\n<p>The index,\u00a0which measures the dollar\u2019s strength against a basket of top national currencies, rose by 0.41% to 92.53 on Tuesday and continued climbing in the ongoing session to settle its intraday high at 92.73.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/ead18103-6489-4611-b724-09504978ad79.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>DXY hourly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>DXY moved away from its one-month low, benefiting from the rising U.S. Treasury yields ahead of the government debt sale this week, including $58 billion in three-year notes, $38 billion in 10-year notes, and $24 billion in 30-year bonds.<\/p>\n<p>The yield on the benchmark U.S. 10-year Treasury note yield, which was around 1.32% after Friday\u2019s weak non-farm payroll report, rose to 1.377% on Tuesday. At the time of writing, it stands at 1.351%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/350203b1-0cb2-41e3-913d-c7feb6af78e3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>U.S. government bond 10-year yield. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Mixed_outlook_until_Fed_meeting\"><\/span>Mixed outlook until Fed meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Rising yields typically compete for haven flows against Bitcoin and gold. But despite the latest climb, they remain below July\u2019s 5.4% core inflation, thus posing non-yielding safe havens as more attractive bets against rising consumer prices.<\/p>\n<p>But with the Federal Reserve planning to start winding down its $120-billion-a-month asset purchasing facility at the end of this year, some analysts believe that bond yields will keep on recovering. In turn, they will provide the dollar a bullish backstop.<\/p>\n<p>Shaun Osborne, chief FX strategist at Scotiabank in Toronto, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2021\/09\/07\/forex-markets-dollar-european-central-bank-reserve-bank-of-australia.html\">told<\/a>\u00a0CNBC:<\/p>\n<blockquote><p>\u201cThe Federal Reserve we think is still likely to move toward tapering by the end of this year, the U.S. economy is likely to perform relatively strongly, so our view is minor dollar dips, minor dollar weakness is probably a buying opportunity.\u201d<\/p><\/blockquote>\n<p><strong><em>Related:\u00a0Bitcoin price to hit $100K in 2021 or early 2022: Standard Chartered<\/em><\/strong><\/p>\n<p>Meanwhile, the rising COVID-19 Delta variant\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/delta-economic-recovery-jobs-report-august-covid-cases-virus-recession-2021-9\">threatens to dampen recovery prospects<\/a>. In turn, it could force the Fed to sustain its expensive bond-buying program, thus keeping a lid on yields and the dollar alike.<\/p>\n<p>As a result, the outlook for Bitcoin and gold looks mixed. The Federal Open Market Committee\u2019s meeting later this month expects to shed more light on the taper timeline.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-s-sharp-fall-from-50k-linked-to-stronger-us-dollar-gold-correlation-shows\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin\u2019s sharp fall from $50K linked to stronger US dollar, gold \u2014 Correlation shows &#8221; Bitcoin (BTC) and spot gold hovered below their key psychological levels on Wednesday as a stronger United States dollar weighed on investors\u2019 appetite for hedging assets. The BTC\/USD exchange rate dropped 5.27% to its intraday low of $44,423 but&#8230;<\/p>\n","protected":false},"author":1,"featured_media":336376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvZjc0NmQzZTEtYjQ4My00NzlmLWIxY2MtZmE1OTY4ZDAwNjYxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,74982,82962,76153,74939,75679,75150,70550,71835,70551,73785],"class_list":["post-336375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-btc-markets","tag-coinmarketcap","tag-dollar","tag-market-analysis","tag-market-capitalization","tag-market-update","tag-federal-reserve","tag-gold","tag-inflation","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=336375"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/336376"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=336375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=336375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=336375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}