The post Bitcoin and Gold Both Bleed Funds appeared on BitcoinEthereumNews.com. Bitcoin For years, gold and Bitcoin have been viewed as rivals in the “store-of-value” debate, often moving in opposite directions when investors reallocate capital. But August broke that pattern: both assets faced significant outflows at the same time, highlighting how uncertainty in U.S. monetary policy is unsettling markets across the board. Rare Parallel Outflows Instead of the usual see-saw effect, Bitcoin ETFs saw nearly $2 billion in withdrawals during the final stretch of August, marking six straight days of redemptions. Gold funds, which typically soak up those flows, also lost ground, with almost half a billion dollars exiting in just one week. Later in the month, however, both asset classes saw a brief recovery, with Bitcoin ETFs logging a four-day inflow streak and gold funds also bouncing back. Still, the unusual alignment suggests investors are pulling back altogether rather than rotating between the two. Macro Clouds Dominate The synchronized exits come against a backdrop of mixed economic signals: inflation remains stubbornly high, while labor market data points to a slowdown. This leaves the Federal Reserve in an uncomfortable position, torn between holding rates higher for longer or cutting to support growth. Until the Fed’s direction is clear, investors appear unwilling to take heavy bets on either speculative risk assets like Bitcoin or traditional safe havens like gold. Instead, many are choosing to sit in cash or move toward higher-yielding instruments. Outlook Ahead Both Bitcoin and gold have long been seen as hedges against instability, but this month’s unusual correlation shows that when policy signals are murky, even hedges lose their shine. The next Fed meeting is likely to decide whether this pause in flows turns into a deeper trend or a temporary detour. The information provided in this article is for informational purposes only and does not constitute financial, investment,… The post Bitcoin and Gold Both Bleed Funds appeared on BitcoinEthereumNews.com. Bitcoin For years, gold and Bitcoin have been viewed as rivals in the “store-of-value” debate, often moving in opposite directions when investors reallocate capital. But August broke that pattern: both assets faced significant outflows at the same time, highlighting how uncertainty in U.S. monetary policy is unsettling markets across the board. Rare Parallel Outflows Instead of the usual see-saw effect, Bitcoin ETFs saw nearly $2 billion in withdrawals during the final stretch of August, marking six straight days of redemptions. Gold funds, which typically soak up those flows, also lost ground, with almost half a billion dollars exiting in just one week. Later in the month, however, both asset classes saw a brief recovery, with Bitcoin ETFs logging a four-day inflow streak and gold funds also bouncing back. Still, the unusual alignment suggests investors are pulling back altogether rather than rotating between the two. Macro Clouds Dominate The synchronized exits come against a backdrop of mixed economic signals: inflation remains stubbornly high, while labor market data points to a slowdown. This leaves the Federal Reserve in an uncomfortable position, torn between holding rates higher for longer or cutting to support growth. Until the Fed’s direction is clear, investors appear unwilling to take heavy bets on either speculative risk assets like Bitcoin or traditional safe havens like gold. Instead, many are choosing to sit in cash or move toward higher-yielding instruments. Outlook Ahead Both Bitcoin and gold have long been seen as hedges against instability, but this month’s unusual correlation shows that when policy signals are murky, even hedges lose their shine. The next Fed meeting is likely to decide whether this pause in flows turns into a deeper trend or a temporary detour. The information provided in this article is for informational purposes only and does not constitute financial, investment,…

Bitcoin and Gold Both Bleed Funds

Bitcoin

For years, gold and Bitcoin have been viewed as rivals in the “store-of-value” debate, often moving in opposite directions when investors reallocate capital.

But August broke that pattern: both assets faced significant outflows at the same time, highlighting how uncertainty in U.S. monetary policy is unsettling markets across the board.

Rare Parallel Outflows

Instead of the usual see-saw effect, Bitcoin ETFs saw nearly $2 billion in withdrawals during the final stretch of August, marking six straight days of redemptions. Gold funds, which typically soak up those flows, also lost ground, with almost half a billion dollars exiting in just one week.

Later in the month, however, both asset classes saw a brief recovery, with Bitcoin ETFs logging a four-day inflow streak and gold funds also bouncing back. Still, the unusual alignment suggests investors are pulling back altogether rather than rotating between the two.

Macro Clouds Dominate

The synchronized exits come against a backdrop of mixed economic signals: inflation remains stubbornly high, while labor market data points to a slowdown. This leaves the Federal Reserve in an uncomfortable position, torn between holding rates higher for longer or cutting to support growth.

Until the Fed’s direction is clear, investors appear unwilling to take heavy bets on either speculative risk assets like Bitcoin or traditional safe havens like gold. Instead, many are choosing to sit in cash or move toward higher-yielding instruments.

Outlook Ahead

Both Bitcoin and gold have long been seen as hedges against instability, but this month’s unusual correlation shows that when policy signals are murky, even hedges lose their shine. The next Fed meeting is likely to decide whether this pause in flows turns into a deeper trend or a temporary detour.


The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.



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