🚨 WALL STREET WARNS OF FALLING GOLD PRICES
📉 Spot gold fell 1.8% to around $4,084 per ounce. Reuters reports that the main reason was hotter-than-expected U.S. inflation, prompting markets to raise expectations that the Fed will continue increasing interest rates.
📊 U.S. CPI rose 3.7% year over year and 0.6% month over month in September. The U.S. dollar strengthened, bond yields rose, and U.S. tech stocks came under pressure. This is an unfavorable signal for global liquidity.
💰 How will crypto be affected? When interest rate expectations rise, higher borrowing costs may lead investors to reduce their exposure to riskier assets. Bitcoin ($BTC) and Ethereum ($ETH) could come under pressure, while small-cap altcoins are often more sensitive to declining liquidity.
🔎 However, on October 15, gold recovered by more than 1% as the U.S. dollar weakened. If yields fall and expectations of Fed tightening ease, crypto could receive support. Conversely, a persistently strong U.S. dollar will be a risk to watch.
Do you think Bitcoin will hold up against Fed pressure, or will it continue to correct?
📉 Spot gold fell 1.8% to around $4,084 per ounce. Reuters reports that the main reason was hotter-than-expected U.S. inflation, prompting markets to raise expectations that the Fed will continue increasing interest rates.
📊 U.S. CPI rose 3.7% year over year and 0.6% month over month in September. The U.S. dollar strengthened, bond yields rose, and U.S. tech stocks came under pressure. This is an unfavorable signal for global liquidity.
💰 How will crypto be affected? When interest rate expectations rise, higher borrowing costs may lead investors to reduce their exposure to riskier assets. Bitcoin ($BTC) and Ethereum ($ETH) could come under pressure, while small-cap altcoins are often more sensitive to declining liquidity.
🔎 However, on October 15, gold recovered by more than 1% as the U.S. dollar weakened. If yields fall and expectations of Fed tightening ease, crypto could receive support. Conversely, a persistently strong U.S. dollar will be a risk to watch.
Do you think Bitcoin will hold up against Fed pressure, or will it continue to correct?