Following the collapse of gold, bitcoin also collapsed

It fell on Tuesday, along with the collapse of gold. Both assets lost more than 5% in 24 hours. The first cryptocurrency was losing more than $800 in the moment, falling to $11 100.

The price of the US dollar fell on Tuesday amid a sell-off in U.S. government bonds and a sharp rise in their yields.

"Gold has started to feel the force of gravity, while U.S. Treasury bond yields are showing signs of life," Singapore-based crypto trading firm QCP Capital reported in its Telegram channel, ttrcoin writes.

QCP noted that investors should closely monitor the situation in the gold market and U.S. government bond yields, as these factors can affect the price of bitcoin and ether.

According to Skew, the one-month correlation between the two assets strengthened to a record 68.9%.

Joel Krueger, a currency strategist at LMAX Digital, believes a potential sell-off in the stock markets poses an even greater risk to bitcoin compared to a pullback in the gold market. "There is the potential to see what we saw in the markets in March," he noted.

Stock indices may come under pressure if the U.S. Congress cannot find a compromise on a new package of measures to support the economy.

The main argument in favor of the continuation of the bullish trend is the long-term structure of the market. Analysts note that on charts with longer intervals, such as monthly charts, there is an obvious breakout of the range that has persisted for a long time. The bullish structure will persist if bitcoin can stay in the $10 500 - 12,000 range.

Technical factors are supported by positive characteristics at the blockchain level. As IntoTheBlock notes, the number of bitcoin "hodlers" has increased significantly recently: "The trend toward bitcoin hodling continues. The number of bitcoin hodlers has grown by nearly 4 million in the past 12 months. As of August 9, a total of 20.47 million addresses have held 11.51 million BTC for over a year."

"Bitcoin is increasingly vulnerable to a potential rebound in the dollar. A general improvement in the economic situation following the release of U.S. jobs data is pushing up the dollar and could be a negative factor for bitcoin, as the coin attracted demand from large investors seeking to diversify part of their portfolio with the largest cryptocurrencies," notes the FxPro team of analysts.