Bitcoin Slides to One-Week Low as Investors Rotate Into Gold

Bitcoin fell below $64,000 today, dropping to its lowest level in a week as concerns over the ongoing US-Iran conflict and stalled talks on reopening the Strait of Hormuz weighed on risk assets.

At the same time, gold surged to $4,435 per ounce, its highest level since early June, as investors sought safety amid rising oil prices and geopolitical uncertainty.

Retail Investors Favor Gold Over Bitcoin

Data highlighted a notable shift in retail interest toward gold, with the largest US physical gold backed ETF recording its highest single-day retail inflow since mid-March earlier this month. Total inflows into the fund that day outpaced combined inflows into US spot Bitcoin ETFs, and gold-focused funds have added well over a billion dollars so far this month, putting them on track for their first monthly inflow since February. Despite Bitcoin’s weaker August performance, analysts noted its correlation with gold remains strong on a rolling basis, resembling levels seen during earlier periods when Bitcoin was closely tracked as a digital equivalent to the precious metal.

Bitcoin Remains Range-Bound Ahead of Inflation Data

Bitcoin continues to face resistance near a key long-term trend line around $65,800, an area that has capped price action since early June. Analysts suggest the recent pullback may reflect a liquidity flush of leveraged long positions rather than the start of a deeper decline, with a clean break above resistance potentially opening the path toward higher levels. Markets now turn attention to Wednesday’s US inflation report, a key catalyst expected to influence broader risk asset sentiment heading into the rest of the week.