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Dollar Surge on Fed Rate Outlook Pushes Gold Under $4,000 and Bitcoin Below $60,000

Stronger rate‑hike bets drained institutional ETF demand, forced leveraged liquidations, left markets vulnerable ahead of the U.S. PCE inflation report.

Overview

  • Federal Reserve projections signaled support for at least one more interest‑rate increase this year, prompting traders to price higher short‑term rates and lifting the U.S. dollar to a 13‑month high.
  • The stronger dollar reduced demand for non‑yielding assets so gold briefly fell below $4,000 per ounce and has lost more than 20% since February in the current selloff.
  • Crypto markets weakened as spot Bitcoin fell under $60,000 and then tested about $59,000 on Thursday, contributing to more than $1 billion of liquidations that closed leveraged long positions.
  • U.S. spot Bitcoin ETFs have recorded consecutive weekly net outflows totaling roughly $6 billion, which removed a major institutional buyer and amplified price declines.
  • Regulatory and structural shifts continue to reshape markets as Ripple won conditional preliminary CASP approval in Luxembourg under MiCA even as liquidity stress, quarter‑end expiries, and upcoming asset distributions pose additional near‑term supply risks.