Dollar Gains, Gold Breaks $4K, Bitcoin Faces Pressure in Choppy Markets
Gold Breaks $4,000 as Bitcoin Pulls Back Amid Dollar Strength
Gold and Bitcoin have moved in opposite directions over the past 24 hours, reflecting diverging investor sentiment amid a stronger U.S. dollar.
Bitcoin (BTC) dropped 2.4% to $121,340 after struggling to maintain gains above $126,000 earlier this week, according to CoinDesk data. The broader Coindesk 20 Index fell over 4% to 4,186 points. The decline comes as the U.S. Dollar Index (DXY) surged to 98.90, its highest level since August 5, putting pressure on USD-denominated assets. Analysts say Bitcoin could test support around $118,000 if the selling continues.
The cryptocurrency’s recent highs were supported by over $3 billion in U.S.-listed spot ETF inflows during the week ending Friday.
Meanwhile, gold (XAU) is hitting new milestones, surpassing $4,000 per ounce for the first time. Strong ETF inflows are driving demand, with holdings in gold-backed ETFs reaching their largest levels since September 2022. According to ING analysts, total ETF holdings still have room to grow compared with the 2020 peak, suggesting further upward momentum.
Central bank purchases, geopolitical uncertainty, and safe-haven demand are also contributing to gold’s rally. Tokenized gold products, including PAXG, have similarly crossed the $4,000 mark, pushing the combined market value of tokenized gold above $3 billion.
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