Bitcoin Tests Support as Gold Rally Falls Flat, Falls to FOMC Lows

Gold, BTC/USD Talking Points:

• The past two weeks are non-ideal environments for non-yielding assets like gold and Bitcoin. Treasury yields are surging and even though stocks have held up relatively well so far, there’s less reason for buyers to hit the bid in markets like XAU/USD or BTC/USD.
• Nonetheless, Bitcoin set a fresh high earlier this week, even as gold prices remain on their back foot.

When a market should go down but doesn’t, something is up, and that something could be impactful for what lies ahead than what we already know. That’s the story in Bitcoin right now as the rally is now more than a month old following the massive breakout triggered by the larger Treasury buyback announcement from Scott Bessent. Interestingly, gold had already broken out at that point and the announcement provided a similar bullish prod, although it was lesser in gold than BTC.

But while gold topped shortly after that move, Bitcoin has continued to power higher, even in a backdrop that usually wouldn’t be supportive of such. With US yields surging and continuing that run today, going along with a more hawkish FOMC, gold has continued to draw down. But Bitcoin has just continued to rally.

And even at this point there’s a clear disparity as gold is down for a test of the FOMC lows while Bitcoin is testing a major spot of support.