Bitcoin slipped below $80,000 during Tuesday’s U.S. trading session, extending losses after failing to sustain levels above the psychological threshold. The cryptocurrency, which had reached a 14-week high of $81,265, traded as low as $78,111 on Bitstamp, according to TradingView data.
Gold prices also retreated from multimonth highs, with spot gold falling nearly 2% to $4,605 per ounce. The decline followed a drop in U.S. 30-year Treasury yields, which fell below 5.2% and approached their lowest levels since August 7. The retreat in yields came amid broader market shifts, with U.S. equities posting modest gains despite recent trade tensions.
The S&P 500 and Nasdaq Composite Index rose 0.2% and 0.5%, respectively, in contrast to the pullback in risk assets like Bitcoin and gold. The divergence persisted even as geopolitical friction between the U.S. and Canada intensified, with President Donald Trump criticizing Canada’s trade practices on social media.
Market attention now turns to key U.S. economic releases, including the July Personal Consumption Expenditures (PCE) index, due Wednesday. The PCE data, the Federal Reserve’s preferred inflation gauge, posted its first month-on-month decline since 2020 in June. Additionally, Nvidia is scheduled to report earnings later this week, which could further influence market volatility.
Analysts noted that while rate-cut expectations remain limited in the current inflation environment, the U.S. Treasury’s debt buyback operations have contributed to the recent decline in bond yields. Trading resource The Kobeissi Letter suggested that direct bond-market intervention may be the primary tool to lower yields in the near term, given the Fed’s constrained policy options.
FedWatch data from CME Group indicates a 61.9% probability of a rate-hike freeze at the September Federal Open Market Committee meeting, reflecting cautious optimism about inflation trends.
