Market Update

After a brief rally following soft inflation data, U.S. stocks are sharply declining again, dragging bitcoin (BTC) down as well.

As of noon on the East Coast, the Nasdaq is down by 1.7% and the S&P 500 by 1.2%. Bitcoin surged to nearly $85,000 on Wednesday but has now fallen back to $81,000, down 1% in the last 24 hours.

In contrast, gold is performing as it traditionally does in times of market distress. The price of gold has increased by 1.5%, reaching a new record high, and is close to breaking the $3,000 per ounce barrier for the first time.

Since the Nasdaq’s peak three weeks ago, it has declined nearly 15%, while gold has increased by about 1%. Bitcoin has experienced a significant drop of nearly 20% over the same period.

This trend may echo the late summer and early fall of 2024, when both crypto and stock markets stagnated while gold reached new heights. During that time, bitcoin consolidated between $50,000 and $70,000, while gold appreciated almost 40% to $2,800. Bitcoin eventually surged above $100,000, driven by Trump’s election victory, while gold’s gains slowed as capital shifted towards riskier assets.

Gold exchange-traded funds (ETFs) have seen their largest 30-day average inflows since early 2022, adding 3 million ounces of gold, according to data from Bold.report.

Conversely, spot bitcoin ETFs listed in the U.S. have experienced $5 billion in outflows since February, marking the worst negative streak in their one-year history, according to SoSoValue data.