Why a selloff in gold and silver is dragging bitcoin down
CoinDesk·
60-second summary
Bitcoin is experiencing a decline alongside gold and silver as investors reassess their portfolios following a hawkish Federal Reserve. The traditional safe-haven trade, which once linked precious metals and cryptocurrencies like bitcoin, is unwinding as interest rates rise, causing a selloff in the metals and dragging bitcoin down with them, impacting market confidence.
Bitcoin has long been lumped in with precious metals as a hedge against a weakening dollar. That trade is unwinding on a hawkish Fed, and bitcoin is falling alongside the metals it was supposed to rival.