📉 Gold, Silver & Crypto Sold Off for One Reason: Rising Yields
Gold fell 2%, silver 6%, Bitcoin 2–3%, and Ethereum 6% as hotter-than-expected September CPI raised concerns about further Fed tightening.
Inflation reached 3.7%, while core CPI increased 0.3% monthly. October rate-hike odds jumped, the 10-year Treasury yield touched 5.3%, and the dollar strengthened.
Gold faced pressure because higher yields make non-yielding assets less attractive. Bitcoin suffered from the same macro pressure, amplified by leverage, with approximately $1 billion in liquidations reported within 24 hours.
However, both assets recovered as yields eased and rate-hike expectations declined following comments from the New York Fed's John Williams.
The key event is the October 28 Fed meeting. One counterargument is that rising gasoline prices drove much of the inflation increase, potentially allowing the Fed to look through the shock.
My view: Watch the 10-year Treasury yield closely. If it stays above 5%, gold and BTC could remain under pressure.
#Bitcoin #BTC #Gold #CryptoMarket #XAUt
Gold fell 2%, silver 6%, Bitcoin 2–3%, and Ethereum 6% as hotter-than-expected September CPI raised concerns about further Fed tightening.
Inflation reached 3.7%, while core CPI increased 0.3% monthly. October rate-hike odds jumped, the 10-year Treasury yield touched 5.3%, and the dollar strengthened.
Gold faced pressure because higher yields make non-yielding assets less attractive. Bitcoin suffered from the same macro pressure, amplified by leverage, with approximately $1 billion in liquidations reported within 24 hours.
However, both assets recovered as yields eased and rate-hike expectations declined following comments from the New York Fed's John Williams.
The key event is the October 28 Fed meeting. One counterargument is that rising gasoline prices drove much of the inflation increase, potentially allowing the Fed to look through the shock.
My view: Watch the 10-year Treasury yield closely. If it stays above 5%, gold and BTC could remain under pressure.
#Bitcoin #BTC #Gold #CryptoMarket #XAUt