Bitcoin’s value has fallen for a third consecutive day amid increased treasury yields, currently sitting at $95,101. Concurrently, the overall cryptocurrency market capitalization has dropped by over $80 billion. Gold prices are rising amid strong investor demand as President Trump’s tariffs create market uncertainty, prompting forecasts for further gold price increases.

On Tuesday, Bitcoin continued its downward trend, marking a potential third consecutive loss amid prevailing market risk aversion, attributable to a rebound in US 10-year treasury yields. Currently, Bitcoin is navigating between buyers and sellers as it seeks to establish a fair price following recent volatility.

At Bitstamp, Bitcoin’s value slipped by 0.75% to $95,101, having reached a session high of $96,313. The cryptocurrency also recorded a 0.5% reduction on Monday, potentially indicating a sustained downward trajectory.

Overall, the cryptocurrency market has experienced a significant downturn, with market capitalization decreasing by over $80 billion on Tuesday to approximately $3.250 trillion. The shift is influenced by rising treasury yields, which have moved away from recent lows.

US 10-year treasury yields experienced a rise of 0.9% today, breaking a two-day losing streak, while the dollar index increased by 0.3% to 107.05. This rebound is occurring amidst remarks from Fed official Michelle Bowman, who highlights the need for clear evidence of declining inflation before considering further rate reductions.

Bitcoin appears to be undergoing price correction following earlier notable gains, including a 40% increase in November after the US Presidential election. As investors analyze market movements, comments from Federal Reserve officials and upcoming economic data will be pivotal in determining the future of interest rates.

Amidst these developments, gold prices have also risen, up 0.55% to $2915 per ounce, driven by strong investor demand and the uncertainty surrounding tariffs imposed by President Donald Trump. Such conditions have exacerbated market volatility and heightened interest in safe-haven assets such as gold.

Looking ahead, Goldman Sachs has raised its forecasts for gold prices to $3100 per ounce by the year’s end, reflecting increasing institutional demand. Meanwhile, gold holdings within the SPDR Gold Trust have remained unchanged, indicating stability in this market segment despite recent fluctuations.

In summary, Bitcoin’s decline illustrates a market correction phase as it seeks a fair pricing equilibrium amid rising treasury yields and broader economic uncertainty. Concurrently, gold prices have responded favorably to tariff-induced volatility, with forecasts indicating further potential increases. Investors remain attentive to the Federal Reserve’s forthcoming remarks and economic indicators, which will likely influence market dynamics ahead.

Original Source: www.economies.com

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