As the Fed pushed gold to a 6-week low, Bitcoin fell below $39,000


Bitcoin (Bitcoin) Close to the support level of 38,000 USD on June 17th, because the Fed’s remarks triggered a massive sell-off of gold.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin escaped the fate of gold

Data from Cointelegraph Markets Pro with Transaction view Following the rebound of BTC/USD to US$38,400 on Thursday, it failed to regain US$39,000, which may become its expected “down”.

Wednesday’s Fed meeting and subsequent comments by Chairman Jerome Powell prevented Bitcoin from rising and affected the progress of the entire cryptocurrency.

At the time of writing, with the formation of resistance, $38,900 became the focus, but there is still a narrow support level nearby. Data from Binance shows that a large number of bids are ranked at $37,000 and above.

As of June 17, BTC/USD buy and sell orders on Binance. Source: Material Indicators/ Twitter

However, the more significant decline that day came from gold, which fell to a six-week low after the Fed announced inflation news.

Dollar saw Major push, But the combination of expected higher interest rates and the gradual reduction of future coronavirus measures has created a perfect storm for precious metals.

At the time of writing, XAU/USD is trading below $1,800, which has fallen by nearly $100 in the past 24 hours.

XAU/USD 1-hour candlestick chart. Source: TradingView

Fight all the way

Although traditionally rivals, Bitcoin and gold are still part of the portfolio recommendations of many major investment names.Last week, it was Paul Tudor Jones Provide hints To the public, tell the mainstream media that 5% of the Bitcoin and gold distribution is what he currently “wants”.

related: Bitcoin sell-off may have played a key role in increasing gold’s attractiveness

Nevertheless, the Golden Worm held its ground. Peter Schiff, the founder of SchiffGold, accused the Fed of misunderstanding macroeconomic forces.

“The only temporary nature of these prices is that they get worse,” he said in a statement. New episode His Peter Schiff show.

“We are transitioning from terrible inflation to terrible inflation, and the Fed is completely ignoring what is happening.”

For Tudor Jones, Schiff, who was once a Bitcoin opponent, has a classic warning.

“According to Powell’s extremely dovish remarks at the press conference and Paul Tudor Jones’ recent remarks…it is time to’go all out for inflation trading’,” he said. Tweet.

“Welcome to Paul’s party. But unless you sell your bitcoins, you won’t really go all out.”