Bitcoin surges to a peak then drops below $80,000, with gold also retreating in tandem as market attention turns to PCE data and NVIDIA’s earnings report.

Bitcoin surged to $81,265 on Tuesday before pulling back, dropping as low as $78,111 and falling back below the $80,000 threshold. Gold weakened in tandem: spot gold fell nearly 2% to $4,605 per ounce, after hitting $4,697, its highest level since mid-May. Market trends show that the decline in U.S. Treasury yields no longer continued to drive gains for Bitcoin and gold, instead leading to a divergent pattern: U.S. stocks rose, while cryptocurrencies and gold weakened. The S&P 500 gained 0.2%, and the Nasdaq advanced 0.5%; meanwhile, the yield on the U.S. 30-year Treasury bond fell below 5.2%, approaching its lowest level since August 7. Analysts note that recent moves in U.S. Treasury yields remain a key driver of the crypto market. The U.S. Treasury Department earlier expanded its long-term Treasury repurchase program to ease upward pressure on long-dated yields, but amid the current inflation environment, the Federal Reserve’s room for interest rate cuts remains limited. Markets currently price in a roughly 61.9% probability that the Fed will hold interest rates steady in September. In the short term, market focus is shifting from Treasuries to the U.S. July PCE inflation data and the Jackson Hole Economic Symposium. Nvidia’s post-market earnings report on Wednesday could also act as a new catalyst for volatility in risk assets.