Matrixport: The Divergence Between Gold and Bitcoin Trends May Continue

Jinse Finance reported that Matrixport released today's chart stating, "According to the implied pricing of federal funds futures, the market now expects an 84% probability that the Federal Reserve will cut rates on December 10, while the probability of keeping rates unchanged in January next year has also risen to 65%. Under such an expected interest rate path, even if a rate cut is implemented in December, the overall monetary policy easing will still be limited. Compared to bitcoin, gold has a higher correlation with the US fiscal deficit and the pace of Treasury issuance, making it a more direct hedge against fiscal expansion and rate cut expectations. Bitcoin, on the other hand, relies more on substantial incremental capital inflows, and currently, incremental liquidity has not been significantly released. In this environment, the divergence in trends between gold and bitcoin is likely to persist in the short term."