Market News Today: Gold Skyrockets Past $4K as Bitcoin Slips Below $122K With Dollar Index at Two-Month High

Key TakeawaysGold surges above $4,000, marking a new all-time high driven by ETF inflows and central-bank demand.Bitcoin falls 2.4% to $121,340, losing momentum after hitting a record high earlier this week.The U.S. dollar index (DXY) climbed to 98.90, its strongest since early August, pressuring risk assets.Analysts see Bitcoin support near $118,000, with macro headwinds limiting upside for now.Gold and Bitcoin have sharply diverged in the past 24 hours, reflecting shifting investor sentiment amid a strengthening dollar and rising bond yields.Bitcoin (BTC), the world’s largest cryptocurrency, fell 2.4% to $121,340 after failing to hold resistance near $126,000, according to CoinDesk data. The CoinDesk 20 Index dropped 4% to 4,186, signaling broader weakness across the crypto market.The pullback coincides with renewed U.S. dollar strength, as the Dollar Index (DXY) rose to 98.90, its highest level since August 5. Historically, a rising DXY weighs on USD-denominated assets such as Bitcoin and gold, by tightening global liquidity and increasing real yields.Chart data suggests BTC could retest $118,000 in the near term despite strong institutional inflows through spot Bitcoin ETFs, which added over $3 billion last week.Meanwhile, gold (XAU) extended its record-breaking rally, surpassing $4,000 per ounce for the first time in history. Analysts at ING attribute the surge to robust ETF inflows, with holdings now at their highest level since September 2022.“Gold-backed exchange-traded funds are expanding rapidly,” ING noted. “With total holdings still below 2020 peaks, there’s further room for additions that could push prices even higher.”Gold’s two-year price doubling has also been fueled by central bank accumulation and geopolitical tensions — from trade frictions under Donald Trump’s renewed policy agenda to ongoing conflicts in the Middle East and Ukraine.Even gold-backed tokens such as PAXG have mirrored the surge, with the combined market value of gold-linked assets exceeding $3 billion.