Bitcoin falls with gold and silver as Fed hawkishness unwinds the 'debasement trade'
By
Shaurya Malwa
Summary
Bitcoin is falling alongside gold and silver as the "debasement trade" — the bet that both precious metals and crypto serve as hedges against a weakening dollar — unwinds due to a hawkish Federal Reserve. The AI stock frenzy has pulled capital away from both traditional safe-haven metals and risky assets like bitcoin, causing simultaneous selloffs. The article argues these assets have been largely the same trade for the past two years, and now the same macroeconomic forces are driving their decline.
Source
bskyBitcoin falls with gold and silver as Fed hawkishness unwinds the 'debasement trade'coindesk.comKey quotes
· 3 pulledThe ongoing artificial intelligence stock frenzy has pulled in capital from across the market, from traditional metals, considered the safest assets, to crypto, considered the riskiest.
The three selloffs are not a coincidence. For much of the past two years, they have been, to a large degree, the same trade, and now the same forces are unwinding it.
That trade even has a name, the 'debasement' trade. It is the bet that...
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