U.S. inflation has just crossed the 4% threshold, and analysts are sounding the alarm for Bitcoin and gold. These two safe-haven assets, which are supposed to protect against currency depreciation, could paradoxically face a short-term correction. There’s a sense of nervousness in the air. 📉
🔍 What’s happening?
The U.S. Consumer Price Index has surpassed 4% year-over-year, setting off alarm bells among traders. This figure, well above the Fed’s 2% target, brings the issue of interest rates back into the spotlight.
Bitcoin is currently trading around $63,074, up 3.39% over the past 24 hours. Gold, meanwhile, is facing downward pressure despite its status as a traditional safe-haven asset. Analysts point to an inverse correlation between rising rates and these two assets.
💡 Why does this matter?
For crypto traders, this is the moment of truth. Persistent inflation above 4% could force Jerome Powell to keep rates high longer than expected. However, high interest rates make non-yielding assets like Bitcoin and gold less attractive compared to government bonds that offer guaranteed cash returns.
The parallel with Europe is telling. Christine Lagarde’s ECB has already begun easing its monetary policy in the face of inflation under control at around 2.5%. The divergence in monetary policy between the two sides of the Atlantic could create turbulence in capital flows and weigh on cryptocurrencies.
📊 Our view
We see a short-term trap. Bitcoin is staking its credibility as an inflation hedge, but the technical reality tells a different story.
Historically, BTC has always struggled when rates rise. The current 3.39% rally could be a final surge before a more severe correction if the Fed takes a harder line. Gold, despite 5,000 years of history as a safe-haven asset, is not spared either. Both assets share the same drawback: they generate no cash flow, unlike bonds, which now offer positive real yields. In our view, as long as U.S. inflation remains above 3.5%, downward pressure on Bitcoin and gold will persist. The real winners in this context? The dollar and short-term U.S. Treasury bills. In Europe, the AMF is closely monitoring the impact of these macroeconomic shifts on regulated crypto-assets, especially following the implementation of MiCA.
We anticipate Bitcoin consolidating between $58,000 and $65,000 in the coming weeks. For French traders: prioritize a defensive strategy, reduce your speculative positions, and keep cash on hand to buy the dip if the correction materializes.
✅ Key Takeaways
- U.S. inflation exceeds 4%, well above the Fed’s 2% target
- Bitcoin and gold under pressure despite their safe-haven status
- Prolonged high interest rates are hurting non-yielding assets
- Bitcoin is trading at $63,074, up 3.39% over the past 24 hours
- A defensive strategy is recommended for French traders in the short term
What do you think? Can Bitcoin really hold its ground against a Fed that’s keeping its foot on the brake?
🔎 See also
For more insights, check out all our crypto analyses on ActuTrading Crypto 📈
Source: CoinTelegraph, market data
