business
Why a selloff in gold and silver is dragging bitcoin down
Key takeaways
- Gold dropped below $4,000 for the first time since November earlier this week, silver has lost more than half its value from its high, and bitcoin has slipped to nearly $58,000.
- For much of the past two years, they have been, to a large degree, the same trade, and now the same forces are unwinding it.
- That trade even has a name, the "debasement" trade.
Gold dropped below $4,000 for the first time since November earlier this week, silver has lost more than half its value from its high, and bitcoin has slipped to nearly $58,000.
The three selloffs are not a coincidence. For much of the past two years, they have been, to a large degree, the same trade, and now the same forces are unwinding it.
That trade even has a name, the "debasement" trade. It is the bet that heavy government spending and rising national debt will slowly erode the value of paper money, which pushes investors toward scarce assets that no government can print more of.
Article preview — originally published by CoinDesk. Full story at the source.
Read full story on CoinDesk →
More top stories
Also covered by
Fortune
Bitcoin down 20% since May as Strategy fallout spooks investors
Yahoo Finance
I inherited gold and silver worth tens of thousands — but with no receipts, how do I find out what it’s worth?
Bloomberg Markets
Rocket Lab Rises on NASA Selection; Microsoft Down on Tech Selloff | Stock Movers
Yahoo Finance
Silver Range Resources delivers high-grade gold samples from Alamo project - ICYMI
Aggregated and edited by the Scoop newsroom. We surface news from CoinDesk alongside other reporting so you can compare coverage in one place.
Editorial policy · Corrections · About Scoop