Caroline Mauron, co-founder of Orbit Markets, stated that the market "has seen a continuation of profit-taking since hitting record levels last week," adding that "the momentum behind the crypto treasury boom seems to be losing strength."
Metaplanet Inc., the Japanese hotel operator that has raised 2.2 billion dollars in bitcoin $BTC
, has lost about 50% of its value since mid-June.
Nick Ruck, research director at LVRG Research, noted that bitcoin's role as "digital gold" could come back to the forefront if central banks adopt easing policies.
Ruck said: "Potential interest rate cuts from the Federal Reserve in September could reignite bitcoin's correlation with gold as a liquidity-based hedge, but the recent separation shows that gold thrives on central demand while bitcoin remains tied to risk appetite."
He added: "Historically, the two assets often converge during periods of monetary easing, but gold hitting record levels amid geopolitical tensions highlights its ongoing role as a safe haven, while the bitcoin narrative relies on institutional adoption and clarity from the Fed."