Both gold and Bitcoin have come under strong selling pressure. In the last few hours, the price of gold has fallen by more than 7%, and Bitcoin has dropped below the level of 82,000 USD. Although both assets are often regarded as 'safe havens', the current market conditions show something completely different.
What is behind the declines?
1. Strong dollar and uncertainty surrounding the Fed
The strengthening of the US dollar has put pressure on alternative assets. Additionally, the market is reacting nervously to speculation regarding the future chairman of the Federal Reserve. The potential nomination of Kevin Warsh has increased uncertainty about future interest rate policy and liquidity.