Bitcoin’s BTC$61,412.97 bounce from last week’s low is rolling over, and gold is going down with it.

BTC changed hands at $61,233 on Wednesday, down 3% over 24 hours and 6.9% on the week, while gold fell 2% to below $4,200 an ounce. The market is betting on higher interest rates and is punishing assets like bitcoin and crypto that don’t pay one.

Ether (ETH) fell 3.4% to $1,625, and solana (SOL) dropped 4.1% to $64.24, according to CoinDesk data. XRP (XRP) lost 4.3% to $1.12, while BNB BNB$585.66 and DOGE$0.08351 each slid less than 3%. Hyperliquid’s HYPE was the worst of the majors again, down 10.2% on the day and 21.3% on the week to $55.52, the highest-beta name in the group as risk came off.

South Korea’s Kospi, the market most exposed to the artificial-intelligence trade through its chipmakers, tumbled 6.3%, leading a 2.5% drop in MSCI’s broad Asia-Pacific equity gauge and its fourth loss in five days. Nasdaq 100 futures pointed 0.8% lower after a volatile Wall Street session. Brent crude traded near $92 a barrel as renewed U.S. strikes on Iran kept a bid under oil, and the 10-year Treasury yield rose to 4.54%.

Gold and bitcoin rarely fall in lockstep, as both are stores of value that pay no yield, so both lose their appeal when traders bet on higher rates, and that is what Wednesday’s U.S. inflation report could force.

A hot reading would harden the case for new Federal Reserve Chair Kevin Warsh to keep rates higher for longer, draining liquidity from the assets that ran hardest on cheap money.

The bounce that ran into Monday was a short squeeze, not fresh buying, as over $500 million in bearish bets were liquidated, the highest such figure since April.
Some market watchers say spot demand never showed up behind it.

“Buyers have stepped in after the move lower, but spot demand has yet to return in a meaningful way,” said Diana Pires, chief business officer at sFOX, pointing to a run of U.S. spot bitcoin ETF outflows that has kept institutional money cautious. When new demand isn’t broad enough to cover the selling, she said, rallies struggle to hold.

Watch whether bitcoin can hold a bid through the inflation print or keeps trading tick-for-tick with the Nasdaq. If gold steadies and bitcoin keeps falling, the case for it as a macro hedge thins further.