Bitcoin falls to one-week low ahead of U.S. CPI data

Bitcoin slipped to its lowest level in a week on Wednesday, extending losses ahead of the U.S. consumer price index (CPI) data due for release on Thursday.

The cryptocurrency fell to $67,200, down about 2% from the previous day, as investors adopted a cautious stance before the inflation report. Analysts cited macroeconomic uncertainty and profit-taking as key drivers of the decline.

In contrast, gold prices advanced to a nine-week high, with the XAU/USD pair reaching $2,380 per ounce. Retail investors contributed to the rally by increasing holdings in gold-backed exchange-traded funds (ETFs), according to data from the World Gold Council. The surge in gold demand pushed prices to levels not seen since mid-June.

The divergence in performance between Bitcoin and gold reflected shifting investor preferences, with some market participants favoring traditional safe-haven assets amid concerns over economic data and geopolitical risks. The U.S. CPI report is widely anticipated to provide further clarity on the Federal Reserve’s policy trajectory, which has been a key factor in recent market movements.

Analysts noted that while Bitcoin remained near its recent highs, its sensitivity to macroeconomic indicators continued to weigh on short-term price action. The cryptocurrency’s decline contrasted with gold’s resilience, underscoring the latter’s role as a traditional store of value during periods of uncertainty.