Gold once fell below $4000, silver halved, Bitcoin fell to $58000, and the 'currency devaluation trade' completely collapsed According to BlockBeats, on June 28th, gold, silver, and Bitcoin were experiencing synchronized and significant declines, which is not a coincidence - they collectively formed the theme of "currency devaluation trading" in the past two years, and now they are collectively disintegrating under the impact of the same macro force. Gold fell below $4000 this week, down about 28% from its historical high of $5600 in January 2025; Silver has fallen more than 50% from its high of $120; Bitcoin has fallen by about 50% since its peak in October, approaching $58000 at one point, and has already fallen below the 200 week moving average of about $60000- a key moving average widely regarded as long-term support for Bitcoin. The so-called "currency devaluation transaction" is a bet that large-scale government spending and the continuous rise of treasury bond will erode the purchasing power of paper currency, thus promoting the flow of funds to scarce assets such as gold, silver and Bitcoin with a supply ceiling of 21 million pieces. During the weakening of the US dollar in 2025, the three types of assets simultaneously attracted a large influx of funds and were treated as one basket of assets by the market. The force driving the reversal is now equally unified. The first interest rate meeting of the new Federal Reserve Chairman Walsh released a hawkish signal, and the market is currently pricing two 25 basis point rate hikes each until March 2027, with the US dollar rising 0.8% this week. Higher real interest rates increase the opportunity cost of holding unprofitable gold, silver, and Bitcoin, while a strong US dollar puts pressure on non US currency buyers. It is worth noting that Bitcoin underperformed gold and silver during its upward phase, but followed suit during its downward phase, highlighting its awkward situation. However, since the low point in February, Bitcoin has risen by about 30% against gold and over 55% against silver, indicating a relative improvement in performance. Analysts point out that Bitcoin plays both the role of a speculative risk asset and a hard currency hedge tool, and both logics are currently pointing downwards. Until the Federal Reserve maintains a hawkish stance and the US dollar remains strong, Bitcoin may find it difficult to separate from its association with precious metals. [Original link]