Bitcoin (BTC) slipped to a one-week low on Tuesday as investors shifted toward gold amid heightened market uncertainty ahead of the release of US inflation data.
BTC fell below $64,000 during the Wall Street session after failing to sustain an earlier rebound. The cryptocurrency had already declined 1.5% on Monday as concerns surrounding the US-Iran conflict and uncertainty over the reopening of the Strait of Hormuz weighed on risk assets.
Meanwhile, gold strengthened significantly, with spot gold (XAU/USD) reaching $4,435 per ounce, its highest level since June 5.
Growing demand for gold was particularly visible among retail investors. According to data highlighted by The Kobeissi Letter, the SPDR Gold Shares (GLD) ETF recorded $50 million in retail inflows on August 5, marking its strongest single-day retail inflow since mid-March.
GLD received total inflows of $637 million that day, compared with combined inflows of $244.4 million into US spot Bitcoin ETFs.
Investors have added around $1.4 billion to GLD so far in August, putting the fund on track for its first monthly inflow since February.
Despite Bitcoin’s weaker performance, its 90-day rolling correlation with gold remains positive. CryptoQuant CEO Ki Young Ju said the relationship between Bitcoin and gold has returned to levels associated with the “digital gold” era.
Bitcoin is also facing technical resistance around $65,800-$66,000. The 50-month exponential moving average (EMA) currently stands near $65,827, creating an important barrier for further gains.
Market analyst Michaël van de Poppe said Bitcoin remains range-bound and suggested that a move back toward $64,500 could help stabilize the market. He noted that a breakout above $65,800 could open the way toward $73,000.
The next major catalyst for Bitcoin and other risk assets is the US Consumer Price Index (CPI) report for July, due Wednesday. The inflation data could influence expectations for US monetary policy and trigger increased volatility across cryptocurrency and traditional financial markets.
For now, Bitcoin remains below the key $66,000 resistance zone while gold continues to attract investor demand as a safe-haven asset.
