Bitcoin drops to one-week low as retail gold buying hits $1.4B

Bitcoin fell 1.5% to below $64,000, a one-week low, as retail investors piled into gold ETFs.

"So far in August, investors have added +$1.4 billion to $GLD, putting the ETF on track for its first monthly inflow since February. Investor appetite for gold is back," The Kobeissi Letter said in a post on X.

Gold reached $4,435 an ounce Tuesday, its highest since June 5, with NYSE ARCA-traded SPDR Gold Shares (GLD) drawing $637 million in daily inflows on Aug. 5 — including $50 million from retail, the largest single-day retail tally since mid-March. US spot Bitcoin ETFs recorded a combined $244.4 million inflow the same day. The rotation unfolded as crude oil surged 5% after Iran issued new demands over reopening the Strait of Hormuz, and the 10-year Treasury yield climbed to 4.71%.

Wednesday's July Consumer Price Index print is the week's key risk event. Crypto markets have historically weakened into major US inflation releases, while July's soft reading triggered daily gains of more than 4% for Bitcoin. A hot print would renew pressure on the largest cryptocurrency, which has managed just three daily closes above its 50-month exponential moving average at $65,827 since the start of June.

Gold's Retail Revival Outpaces Bitcoin ETF Flows

The divergence in flows shows the shift in retail risk appetite. Bitcoin's 90-day correlation to gold has returned to "digital-gold-era levels," CryptoQuant chief executive Ki Young Ju wrote on X, even as the largest cryptocurrency has lagged the metal's August advance. Bitcoin is down 26% year to date, while gold is up 1%, according to Argus Research data.

CPI Looms as BTC Holds Below $66,000 Resistance

Trader and analyst Michaël van de Poppe said the recent correction was "most likely just a liquidity grab from leveraged longs being positioned in the markets," adding that consolidation and a slight bounce to $64,500 would signal the cascade is not continuing. The 50-month EMA at $65,827 remains the key resistance, with the zone below $66,000 under watch as rangebound behavior persists. The Cleveland Fed's Inflation Nowcast puts July CPI at 3.4%, with the next Federal Open Market Committee rate decision due Sept. 16.

This article is for informational purposes only and does not constitute investment advice.