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Matrixport: The divergence between gold and Bitcoin trends may continue.
[Matrixport: The Divergence Between Gold and Bitcoin Trends May Continue] Matrixport released a chart today stating that "According to the implied pricing of federal funds futures, the market expects the probability of the Fed cutting rates on December 10 to rise to 84%, while the probability of maintaining interest rates in January next year has also increased to 65%. Under such expectations for the interest rate path, even if there is a rate cut in December, the overall easing of monetary policy will still be limited. Compared to Bitcoin, gold has a higher correlation with the U.S. fiscal deficit and the pace of national debt issuance, making it more direct in hedging against fiscal expansion and interest rate cut expectations. Bitcoin, on the other hand, relies more on the actual incremental capital inflow, which has not yet been significantly released. In this environment, the divergence in trends between gold and Bitcoin is likely to continue in the short term.