Bitcoin’s been having a pretty frustrating time lately, failing to crack $110,000 even after the monthly options expiry that usually gives it a boost. The coin’s sitting around $109,536 while pretty much everything else in traditional markets is doing well, which has to be annoying for crypto holders.
The weird part is that the macro environment should actually be helping Bitcoin. US consumer spending jumped 0.6% in August, which sent the S&P 500 higher on Friday. Gold is absolutely crushing it, hitting $3,7600 and getting close to all-time highs. But Bitcoin? It’s just sitting there like a bump on a log.
Part of the problem is that inflation came in at 2.7% for August, exactly what economists expected. That’s keeping the Fed cautious about cutting rates too aggressively. Traders have already dialed back their expectations for rate cuts, with only a 67% chance of two quarter-point cuts by year end, down from 79% just a week ago.
What’s really galling for Bitcoin believers is watching gold soar while their digital gold alternative struggles. Gold is traditionally where people park money when they’re worried about uncertainty, and apparently investors are choosing the shiny metal over digital assets right now.
The regulatory environment isn’t helping either. The Wall Street Journal reported that the SEC and other regulators have been poking around some crypto treasury companies, asking questions about suspicious trading volumes before corporate announcements. That kind of scrutiny never makes investors feel warm and fuzzy about crypto stocks.
Conclusion
In short, despite a favorable macro backdrop and gold’s surge, Bitcoin remains stagnant under $110K. With regulatory scrutiny and tempered rate-cut hopes, investors seem to prefer traditional safe havens over the so-called digital gold.
Also Read: Bitcoin Price Slips
