Bitcoin News Today: Institutional Gold Rush Leaves Bitcoin Struggling for Credibility

Goldman Sachs has positioned gold as a key asset in its analysis of macroeconomic uncertainty, particularly as concerns mount over the Federal Reserve’s potential loss of credibility. According to the firm, if confidence in the Fed wanes, investors could shift a portion of their U.S. Treasury holdings into gold, potentially pushing the price of gold toward nearly $5,000 per ounce. This prediction aligns with broader trends in investor behavior, with gold recently breaking through a new record high of $3,500 per ounce, signaling a shift in risk appetite. Meanwhile, Bitcoin, despite its digital gold moniker, has seen a muted response, trading over 10% below its August peak of $124,500 [3].

Analysts highlight a weakening correlation between gold and Bitcoin in recent weeks, suggesting that Bitcoin is increasingly behaving like a high-beta asset rather than a safe-haven store of value. Illia Otychenko of CEX.IO noted that while Bitcoin remains under pressure from short-term holders, gold continues to climb as macroeconomic uncertainty persists. Similarly, LMAX Group strategist Joel Kruger observed that Bitcoin’s muted reaction to gold’s rally reflects growing risk aversion among investors. However, there are early signs of a shift in capital flows into Bitcoin-related products, with Bitcoin ETFs experiencing a notable $774 million in inflows over the past week after recording significant outflows the previous week [2].

The divergence between Bitcoin and gold is further amplified by institutional activity. Elsewhere Strategy, the largest corporate holder of Bitcoin, disclosed an additional acquisition of 4,048 Bitcoin in early September, valued at approximately $449.3 million at an average price of $110,981. This brings the firm’s total Bitcoin holdings to over 636,505, with a current estimated value of nearly $70 billion. Such institutional interest suggests that even amid macroeconomic volatility, Bitcoin is still seen as a viable asset for long-term capital allocation [2].

The potential for a Fed rate cut on September 16 has also intensified speculation about how risk assets like Bitcoin might perform. The CME FedWatch tool currently puts the probability of a rate cut at 89.7%, which could reduce borrowing costs and encourage a shift in capital from bonds into equities and other higher-risk assets. Goldman Sachs’ analysis suggests that any perceived damage to the Fed’s credibility could further accelerate this trend, reinforcing gold’s role as a safe-haven asset while Bitcoin contends with its dual identity as both a speculative and a store-of-value asset [3].

The broader financial landscape also reveals contrasting regulatory approaches between the U.S. and Europe. While the U.S. has moved to regulate stablecoins through the GENIUS Act, Europe has implemented the Markets in Crypto-Assets (MiCA) Regulation to create a unified framework for crypto markets. European policymakers, including Christine Lagarde of the European Central Bank, have emphasized the need for a digital euro to preserve monetary autonomy amid growing U.S. influence in crypto markets. This regulatory divergence may influence investor allocations and the global adoption of digital assets in the coming months [4].

As markets anticipate the next phase of monetary policy and macroeconomic developments, the interplay between gold and Bitcoin remains a focal point for investors and analysts. While Bitcoin’s performance has yet to mirror the explosive rally in gold, the broader capital flows into crypto-related products and institutional acquisitions suggest that the digital asset is not entirely sidelined in the evolving risk landscape [2].

Source:

[1] title1 (url1)

[2] title2 (url2)

[3] title3 (url3)