Bitcoin and gold prices have collapsed in a sharp reversal of the prevailing market narrative, as investors abandon the so-called debasement trade that had dominated portfolios for the past two years.
The sell-off reflects a rapid shift in sentiment toward the US dollar, driven by renewed faith in the strength of US assets under the leadership of Federal Reserve Chair Kevin Warsh.
The broad-based decline across non-yielding assets signals a decisive repricing of risk.
Gold, silver, and bitcoin are all under severe selling pressure as markets digest the hawkish tone emanating from the Federal Reserve.
This move marks a stark contrast to the previous regime, where precious metals and cryptocurrencies were viewed as essential hedges against currency debasement.
Instead, capital is now flowing back into traditional US assets, suggesting that the dollar’s dominance has been reasserted.