Bitcoin (BTC) headed lower around Tuesday’s Wall Street open as investors’ appetite for gold sent the precious metal to nine-week highs.
Key points:
Bitcoin takes a backseat as gold steals the limelight climbing to $4,435 per ounce.Analysis eyes the Bitcoin-gold positive correlation still in place.Key resistance near $66,000 keeps BTC price action in check ahead of the US CPI inflation print.
Retail investors pile into gold ETFs
Data from TradingView showed BTC/USD abandoning a low-timeframe rebound to drop back below $64,000.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
The pair finished down 1.5% on Monday thanks to concerns over the US-Iran war and the latest impasse over the reopening of the Strait of Hormuz oil route. US stocks tracked sideways amid a fresh 5% surge in oil prices.
As uncertainty grew, new data showed increasing demand for safe haven gold, which hit $4,435 per ounce on Tuesday, its highest level since June 5. Chinese appetites for the precious metal were already on the radar in August.
XAU/USD one-day chart. Source: Cointelegraph/TradingView
Trading resource The Kobeissi Letter highlighted particular interest from the retail sector — currently a key missing component in crypto markets. NYSE ARCA-traded SPDR Gold Shares (GLD) exchange-traded fund attracted daily retail inflows of $50 million on Aug. 5 — the highest single-day tally since mid-March for the largest US physical gold-backed ETF product. The day’s total inflow was $637 million, while the US spot Bitcoin ETFs saw a combined inflow of $244.4 million.
“So far in August, investors have added +$1.4 billion to $GLD , putting the ETF on track for its first monthly inflow since February. Investor appetite for gold is back,” Kobeissi Letter said in a post on X.
GLD retail-investor netflows data. Source: The Kobeissi Letter on X.com
Despite lackluster August BTC price performance, the biggest crypto retained its positive correlation to gold on a 90-day rolling basis, data from onchain analytics platform CryptoQuant showed. “Bitcoin–gold correlation is back to digital-gold-era levels,” CEO Ki Young Ju wrote as an…
..
