Gold, BTC face selling pressure on high rate concerns

The simultaneous decline in Bitcoin and gold prices is driven by market fears that high interest rates could persist longer than anticipated, CoinDesk reported. The outlet noted that BTC has fallen 3% over the past 24 hours, while gold has dropped 2%. As non-interest-bearing assets, both Bitcoin and gold tend to lose their investment appeal when expectations for rising interest rates strengthen. The BTC rebound earlier this week was more of a technical bounce driven by the liquidation of short positions than by new capital inflows. Over $500 million in short positions were liquidated during the recent rally, marking the largest such event since April. CoinDesk explained that if U.S. inflation data comes in higher than expected, the Federal Reserve's high-rate policy could be extended, potentially placing further selling pressure on BTC and other risk assets.