The post Bitcoin Drops to $68,000 as Gold Posts Worst Week in 40 Years appeared first on Coinpedia Fintech News

Gold prices have fallen sharply to about $4,340, making this the largest weekly drop in over 40 years. This comes even as the conflict between the US, Israel, and Iran enters its fifth week,

At the same time, the crypto market is also down by 1.6%. Meanwhile, flagship cryptocurrency Bitcoin has slipped from $76,000 to around $68,000, raising concern in markets around the world

Why is the Gold Price Crashing Today?

According to recent market data, gold prices dropped below $4,340, marking one of the biggest declines this year. Gold had earlier reached nearly $4,600 in March, but suddenly fell nearly 5% in a single day.

The main reason behind this drop is rising U.S. 10-year Treasury yields, which have climbed to around 4.40%, increasing nearly 45 basis points in just three weeks. A stronger dollar usually pushes gold prices lower.

Another major reason is forced liquidation. In just a few hours, gold and silver together erased nearly $2 trillion in market value. Silver alone fell below $65, dropping more than 4%, and wiping out around $150 billion in market cap.

Also, rising oil prices near $112 are increasing inflation concerns. This makes markets expect the Federal Reserve to keep interest rates high until at least 2027. Polymarket traders see a 75% chance of no rate cuts in 2026.

Recently, Donald Trump issued a two-day ultimatum to Iran to reopen the Strait of Hormuz or face potential strikes on power plants. In response, Iran warned it could shut the crucial waterway and target energy and infrastructure facilities if attacked. This increased geopolitical tension, but gold still fell instead of rising.

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How Falling Gold Prices Are Impacting the Crypto Market

The crypto market is also feeling the pressure. The total crypto market cap has dropped around 1.6% to $2.34 trillion. Meanwhile, Bitcoin has fallen to near $68,000 after recently touching $76,000.

Other major cryptocurrencies like Ethereum, Solana, XRP, and Dogecoin have also fallen around 3%. 

Currently, Bitcoin is not acting like gold. Instead, it behaves more like a liquidity asset, moving with interest rates and money supply. When rates rise and liquidity tightens, both stocks and crypto usually fall.

However, one important long-term trend is that Spot Bitcoin ETFs have attracted $56 billion in less than 2 years, almost matching gold ETF inflows built over 15 years, making Bitcoin ETFs one of the fastest capital accumulation stories in ETF history.

Bitcoin vs Gold Chart Prediction

Crypto trader Blade shared the BTC/Gold chart, showing a repeating historical pattern. According to the chart, Bitcoin usually consolidates against gold for around 14 months, and then enters a strong expansion phase.

The same structure appears to be forming again in 2026, which could mean Bitcoin may soon start outperforming gold in the next phase of the cycle.

If this happen bitcoin will soon retest its all-time-high price of $126K.

FAQs

The post Gold Price Today: Why Is Gold Falling and How Low Can It Go This Week appeared first on Coinpedia Fintech News

Gold prices took a sharp hit, slipping below $4,350 and wiping out over $1 trillion in just a few hours. Even more surprising, gold and silver together lost nearly $2 trillion in that short time, leaving investors across global markets shaken.

So, why is gold crashing right now despite ongoing geopolitical tensions?

Why Is Gold Falling Apart? 

Normally, gold rises during crises. But this time, the opposite is happening. Even with the Iran conflict escalating, gold is under pressure.

One major reason is rising bond yields. The US 10-year yield has surged to around 4.40%, climbing sharply in recent weeks. Higher yields make interest-bearing assets more attractive, reducing demand for gold.

At the same time, expectations of rate cuts from the Federal Reserve are fading. With inflation risks still present due to rising energy prices, markets now expect tighter monetary policy for longer.

Liquidity Crunch and Forced Selling

Another factor behind the crash is liquidity pressure. As oil prices surged earlier, traders needed more capital to maintain positions. This forced many to sell gold quickly to raise cash.

Market observers describe this as “mechanical selling” rather than panic. Gold, being highly liquid, is often the first asset sold during such stress.

Adding to this, stop-loss triggers and technical breakdowns accelerated the fall, pushing prices lower in a short time.

Deep Cuts Reveals

According to The Kobeissi Letter, something unusual is happening. Despite oil losing gains and stock futures turning positive, gold continued to fall.

This is unusual because such conditions typically support gold prices. The divergence suggests that a large player may be getting liquidated, creating sudden and sharp price swings.

They also point to “pockets of illiquidity” in the market, meaning there are fewer buyers at certain levels, which increases volatility and causes rapid price gaps.

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How Low Can Gold Go?

Gold has already dropped over 14% in the past month, with intraday lows near $4,350. If pressure continues, further downside is possible in the short term.

An analyst said $4,304 is an important support level that has held strongly before. If gold manages to stay above it, there’s a chance prices could move higher with some upward momentum.

However, if it breaks below $4,304, the next downside targets are seen in the $4,270 to $4,200 range.

What’s Next: Recovery or More Pressure?

The outlook remains mixed. While long-term projections from major institutions and banks like JP Morgan still point toward $6,000+ levels, short-term conditions remain fragile due to high yields and tight liquidity.

Adding another perspective, Peter Schiff argues the sell-off is irrational. He believes rising inflation should support gold, as falling real interest rates are typically bullish for the metal. He also said that rate cuts matter more for stocks, making their relatively mild decline surprising.

For now, markets remain on edge. Whether gold stabilizes or drops further will depend on how inflation, interest rates, and liquidity conditions evolve in the coming days.

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