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Bitcoin Traders Frustrated: Gold Nears Record Highs While BTC Falters
Bitcoin (BTC) failed to reclaim the critical $110,000 level on Friday, despite optimism from traders following the monthly options expiry. Instead, bearish momentum persisted, weighed down by strong US economic data, soaring gold prices, and mounting regulatory concerns.
Macroeconomic Data Favors Traditional Assets
The US Commerce Department reported that the Personal Consumption Expenditures (PCE) price index rose 2.7% in August compared to the previous year, in line with forecasts. Persistent inflation has kept the Federal Reserve cautious about lowering rates, dampening hopes for aggressive monetary easing.
Futures markets now imply just a 67% probability of two quarter-point rate cuts by year-end, down from 79% last week. Meanwhile, gold surged to $3,770, just 0.5% shy of its all-time high, signaling investor preference for traditional safe-haven assets over Bitcoin.
The S&P 500 also gained on Friday after data revealed a 0.6% increase in US consumer spending for August. Strong spending and corporate earnings continue to support stock markets, particularly as the US intensifies its trade war, including a 100% tariff on patented pharmaceuticals.
Regulatory Pressure Adds to Market Uncertainty
Beyond macroeconomics, regulatory challenges have added fresh pressure on Bitcoin. According to the Wall Street Journal, several cryptocurrency treasury firms have been contacted by US regulators amid concerns over unusual trading volumes ahead of corporate announcements. While no formal charges have been made, analysts suggest the inquiries could be the start of a wider investigation.
Adding to traders’ frustration is the lack of progress on the US Strategic Bitcoin Reserve plan. Although an Executive Order signed in March referenced “budget-neutral” strategies to accumulate Bitcoin, no concrete steps have been taken, nor have promised audits of government crypto holdings been carried out.
Bitcoin Stuck in a Holding Pattern
For now, Bitcoin remains under pressure from a macro backdrop that favors stocks and gold, alongside uncertainty surrounding regulatory scrutiny and unclear government policy. Traders hoping for a breakout will likely need clarity on both fronts before Bitcoin can mount a sustainable push above $110,000.
