Gold Leads Bitcoin Higher?

Bitcoin saw its largest intraday gain in over a month on Tuesday, as prospects of Federal Reserve rate cuts boosted demand for speculative assets. Bitcoin rose by as much as 6.4% to $61,337, marking its largest intraday gain since August 8.

Other smaller cryptocurrencies such as Ethereum, Dogecoin, and Solana also experienced gains.

Interest rate futures markets indicate a 55% probability that the Federal Reserve will cut rates by at least 25 basis points on Wednesday, with a possibility of a 50 basis point cut. "I believe the increasingly strong correlation between cryptocurrencies and traditional markets recently" is driving Bitcoin higher, said Shiliang Tang, President of Arbelos Markets. Tang also noted that MicroStrategy Inc. announced on Monday its issuance of convertible notes to purchase more Bitcoin, which also boosted sentiment in the cryptocurrency market.

COMEX gold futures fell by 0.47% to $2596.80 per ounce; COMEX silver futures fell by 0.29% to $31.045 per ounce.

In the previous cycle, gold led Bitcoin higher, with gold steadily rising while Bitcoin surged. However, Bitcoin's gains were quick to come and go.