Bitcoin’s sharp fall from $50K linked to stronger US dollar, gold — Correlation shows

Bitcoin’s sharp fall from $50K linked to stronger US dollar, gold — Correlation shows


Bitcoin (BTC) and spot gold hovered below their key psychological levels on Wednesday as a stronger United States dollar weighed on investors’ appetite for hedging assets.

The BTC/USD exchange rate dropped 5.27% to its intraday low of $44,423 but recovered a portion of those losses after reclaiming the $45,000–46,000 range as support. The pair’s recovery also came as an extension to its ongoing rebound from $42,830, a level it reached on Tuesday after falling by more than 18% in the session.

BTC/USD hourly chart. Source: TradingView

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Bitcoin’s massive sell-off coincided with a strikingly similar but dwarfed decline in the rivaling gold market. In detail, the precious metal suffered its worst daily drop in a month on Tuesday as spot XAU/USD rates fell below $1,800 following a minus 1.37% intraday move.

XAU/USD hourly chart. Source: TradingView

The large red hourly candle on gold and Bitcoin charts appeared between 10:00 and 11:00 UTC. However, the precious metal consolidated sideways after the big decline in contrast to

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