Gold is down 28%, silver has lost over half its value, and BTC has dropped below $62,000. "Debasement trade" - the 2025 dominance narrative is reversing sharply under pressure from Fed interest rate hikes.
The market is pricing in two 25 basis point hikes in March 2027. The expectation of monetary tightening has shattered confidence that government debt will continue to erode the purchasing power of fiat. Gold and silver have broken significant psychological levels, dragging BTC down with them.
Notably: BTC is still outperforming gold by about 30% and silver by 55% since February. However, trading below the weekly MA200 (~$62,800) is a technical signal that cannot be overlooked. The bears are controlling the pace.
This is not the time for FOMO or trying to catch the bottom. This correction reminds us that no asset is immune to monetary policy. Risk management and patiently waiting for a clear structure remain top priorities.
DYOR and manage your capital carefully.
#Bitcoin #Fed #DebasementTrade #BTC #Analysis