Bitcoin consolidated above $77,000 following the Wall Street open as gold joined the cryptocurrency rally to reach 14-week highs. Data showed Bitcoin and gold both hitting their highest levels against the US dollar since May 15.
Gold reached multi-month highs of $4,632 per ounce, posting a 2.2% increase on the day. On a monthly basis, BTC/USD and XAU/USD recorded gains of 13% and 16%, respectively. Market commentary from The Kobeissi Letter attributed the gains in both asset classes to inflation, deficit spending, and US Treasury policy, pointing to record government deficit spending and Treasury debt buyback operations.
Trading company QCP Capital highlighted cross-asset signals and surging Japanese government bond yields following a joint currency intervention in the yen. QCP noted that while Treasuries gave back much of their initial rally, Bitcoin and gold did not retrace to the same extent, demonstrating the sensitivity of alternative assets to changes in long-end rates and the dollar.
As Bitcoin's price upside progressed, prediction service Polymarket data put the odds of BTC/USD hitting $90,000 before 2027 at 48%. Meanwhile, analyst Rekt Capital emphasized that Bitcoin needed to reclaim its 50-week exponential moving average at $77,232 to confirm a new technical macro uptrend, noting that a rejection could maintain a series of lower highs.
