Deutsche Bank warned that gold could plummet to $3,800 an ounce if the Federal Reserve implements three to four rate hikes, signaling a significantly more hawkish stance. This forecast underscores a broader market expectation of tighter monetary policy, which typically strengthens the dollar and increases the opportunity cost of holding non-yielding assets like gold and, by extension, Bitcoin. The key data point is the potential for multiple Fed rate hikes, which would likely trigger a flight from perceived safe-haven assets. Investors should watch for any shifts in Fed rhetoric or economic data that could alter the rate hike trajectory, as this will directly influence both gold and Bitcoin's price action.
A hawkish Fed, leading to a stronger dollar and higher real yields, directly impacts Bitcoin's appeal as a store of value. Gold's potential decline signals a broader risk-off environment for non-yielding assets. This macro shift could intensify selling pressure on crypto assets.
This story highlights the dominant influence of Fed monetary policy on asset valuations, including crypto. As traditional safe-havens like gold face headwinds, Bitcoin's correlation to macro factors intensifies. Expect continued volatility and a challenging environment for risk assets.
Deutsche Bank warned that gold could fall to about $3,800 an ounce if the Federal Reserve delivers three to four rate hikes, a scenario that would deepen the metal’s slide. The downside case sits alongside fresh forecast cuts. Deutsche Bank follows Goldman Sachs, which cut its year-end target to $4,