Bitcoin capped below $110K as gold, stocks rally: What’s holding BTC back?
Bitcoin remains under $110,000 despite macroeconomic trends favoring other asset classes like gold and stocks. Positive data, such as the U.S. Commerce Department reporting a 2.7% increase in the PCE price index for August, has shifted investor focus away from Bitcoin. This data supports the Federal Reserve's cautious stance on lowering interest rates, with traders now estimating lesser rate cuts by year-end. As gold prices approached record highs, Bitcoin traders expressed frustration due to regulatory pressures, particularly with ongoing investigations by the SEC concerning suspicious trading volumes related to public companies holding cryptocurrency. These investigations and uncertainty surrounding the U.S. government's Strategic Bitcoin Reserve plans have stopped Bitcoin from capitalizing on favorable market conditions, causing its price to decline further against rising gold and stock indices, as seen with the S&P 500's performance amidst robust consumer spending data.
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