CoinDesk
Bitcoin changed hands at $61,233 on Wednesday, down 6.9% on the week, while gold slipped below $4,200 an ounce — both assets falling in lockstep as traders price in higher-for-longer US interest rates ahead of a critical inflation print. Ether dropped 3.4% to $1,625, Solana fell 4.1% to $64.24, XRP lost 4.3% to $1.12, and Hyperliquid's HYPE was the session's worst major performer, plunging 10.2% on the day and 21.3% on the week to $55.52.
Why it matters
Bitcoin and gold rarely fall together — both are non-yielding stores of value, so a simultaneous selloff signals that the rate-hike thesis is the dominant macro force right now, overriding any safe-haven or inflation-hedge narrative. New Fed Chair Kevin Warsh is seen as hawkish, and a hot Wednesday CPI reading could cement a higher-for-longer stance that drains liquidity from every asset that ran on cheap money. Diana Pires, chief business officer at sFOX, noted that "buyers have stepped in after the move lower, but spot demand has yet to return in a meaningful way," pointing to persistent US spot bitcoin ETF outflows keeping institutional money on the sidelines.
Market impact
The bounce off last week's lows was a short squeeze, not fresh buying — over $500 million in bearish bets were liquidated, the highest such figure since April, yet spot demand never materialised to sustain the move. South Korea's Kospi tumbled 6.3%, Nasdaq 100 futures pointed 0.8% lower, and the 10-year Treasury yield climbed to 4.54%. The key watch: if gold stabilises through the inflation print while Bitcoin keeps sliding, the macro-hedge thesis for BTC weakens materially.
Frequently asked questions
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Why are Bitcoin and gold falling at the same time this week?
Both are non-yielding assets, so when traders bet on higher interest rates — driven by a hawkish Fed outlook and an upcoming US inflation print — demand for both falls simultaneously, removing the usual divergence between them.
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Was the recent Bitcoin bounce driven by real buying or a short squeeze?
The bounce was primarily a short squeeze: over $500 million in bearish bets were liquidated, the highest figure since April, but spot demand and US bitcoin ETF inflows did not return meaningfully to sustain the move.
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What would a hot US inflation print mean for Bitcoin's macro-hedge narrative?
A hotter-than-expected CPI reading would reinforce the case for Fed Chair Kevin Warsh to keep rates elevated, pressuring risk assets further. If gold stabilises while Bitcoin keeps falling, Bitcoin's credibility as a macro hedge weakens materially.
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