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Gold Drops 6% Amid Rising Interest Rates

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Jakub Rochlitz, Market Analyst at eToro

This press release reports a sharp decline in gold prices, which fell 6% on Monday after a 10% slide last week as macro conditions shifted. March is shaping up as one of the weakest months on record, with prices down about 21% since the month began. The move is tied to rising inflation expectations and a evolving rate outlook, alongside higher oil prices driven by regional conflict. Investors are pushing back expected US rate cuts and pricing in the possibility of faster hikes in the UK and Europe. The report notes ETF outflows and profit-taking in a broader liquidation phase, while central-bank purchases provide longer-term support.

Key points

  • Gold fell 6% on Monday after a 10% decline last week, with March down nearly 21% from the month’s start.
  • US 10-year Treasury yield rose by about 0.5 percentage point to 4.421%, its highest since summer 2025.
  • ETF outflows and profit-taking are contributing to a broader liquidation in bullion markets.
  • Central-bank purchases provide ongoing structural support for gold over the longer term.

Why it matters

Gold’s appeal as a safe-haven asset is tested by higher yields and a shifting rate outlook, while ongoing central-bank purchases provide longer-term support; this combination suggests near-term volatility may persist for investors and markets. The dynamics affect traders, asset allocators, and policymakers assessing risk and diversification in a volatile macro environment.

What to watch

  • Near-term volatility as markets adjust to higher rate expectations and inflation dynamics.
  • Any shifts in rate expectations in the US, UK, and Europe based on evolving policy signals.
  • Ongoing central-bank purchases and ETF flows shaping bullion demand.

Disclosure: The content below is a press release provided by the company or its PR representative. It is published for informational purposes.

Gold Slumps 6% as Interest Rates Rise

Abu Dhabi, UAE – March 23, 2026: Gold prices have come under significant pressure, falling 6% on Monday after a 10% decline last week, as shifting macroeconomic conditions weigh heavily on the precious metal. March is now shaping up to be one of the weakest months on record for gold, with prices down nearly 21% since the beginning of the month.

Traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty, gold is currently facing headwinds from rising inflation expectations and a rapidly evolving interest rate outlook. The escalation of conflict in the Middle East has driven oil prices higher, fueling inflation concerns and prompting markets to reassess monetary policy expectations.

Investors are increasingly abandoning expectations of interest rate cuts in the United States, while preparing for the possibility of faster rate hikes in the UK and Europe. This shift has significantly altered the investment landscape, reducing the appeal of non-yielding assets such as gold.

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At the same time, yields on US government bonds have surged, with the 10-year Treasury yield rising by nearly 0.5 percentage points since the start of the month to 4.421%—its highest level since the summer of 2025. Higher yields are strengthening currencies and exerting downward pressure on equities, further diminishing the relative attractiveness of gold.

In addition, the market is experiencing a wave of profit-taking following gold’s strong performance last year, when prices rose by approximately 66%. This has contributed to a broader liquidation phase, marked by ETF outflows, forced selling, and investors closing positions to offset losses in other asset classes.

Despite these short-term challenges, structural support for gold remains intact, particularly from ongoing central bank purchases, which have underpinned the longer-term bullish trend.

Jakub Rochlitz, Market Analyst at eToro, commented:
“Gold is currently caught between two opposing forces. While geopolitical tensions would support demand for safe-haven assets, the inflationary impact of rising energy prices is driving expectations of higher interest rates, which is weighing heavily on gold.

Jakub Rochlitz, Market Analyst at eToro
Jakub Rochlitz, Market Analyst at eToro

What we are seeing resembles a classic liquidation phase, with investors taking profits after last year’s strong rally and repositioning in response to changing macro conditions. In the near term, volatility is likely to remain elevated as markets adjust to these dynamics.

Looking further ahead, the long-term outlook for gold has not been entirely undermined. Its performance will depend on how the geopolitical situation evolves, how inflation trends develop, and how central banks respond.”

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Foundry’s institutional Zcash pool captures a third of new issuance

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Cyclops raises $8m for enterprise stablecoin infrastructure

Foundry’s U.S.‑based, compliance‑first Zcash pool has already grown to roughly one‑third of network hashrate, giving institutional miners a regulated way into privacy coins while stoking fresh centralisation fears.

Summary

  • Bitcoin mining giant Foundry has launched an institutional Zcash pool that already accounts for roughly one‑third of new ZEC issuance.
  • The U.S.‑based, compliance‑focused pool is pitched at institutional and public miners as a “purpose‑built” alternative to offshore privacy‑coin infrastructure.
  • Foundry argues Zcash’s zero‑knowledge privacy with selective disclosure makes it more compatible with regulation than rivals like Monero.

Foundry Digital, operator of the Foundry USA Bitcoin mining pool, has officially launched an institutional‑grade Zcash (ZEC) mining pool that has quickly grown to around 30% of the network’s hashrate, consolidating a significant share of new ZEC issuance under a single U.S.‑regulated operator. The Rochester, New York‑based firm, which Fortune notes already commands about 31% of global Bitcoin production, is positioning its new pool as the default home for institutional miners seeking exposure to privacy‑focused assets without abandoning compliance.finance.

In a Business Wire release, Foundry said the Zcash pool has seen “rapid and sustained hashrate growth reaching ~30% of the current Zcash network hashrate” since it was first announced on March 11, with “multiple institutional mining customers already onboarded and contributing hashrate.” The company stressed that the pool is “designed for professional mining organizations and public companies that require a U.S.-based, compliance-ready partner, including KYC verification in line with Foundry’s institutional standards,” mirroring the governance of its Bitcoin operation.

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Foundry CEO Mike Colyer framed the move as both a bet on Zcash and a response to unmet institutional demand. “Zcash has matured into an institutional‑grade asset, but the mining infrastructure supporting it hasn’t kept pace,” he said, adding that the new pool is “purpose‑built for the operational and compliance requirements of institutional and public miners.”

A CoinMarketCap summary of the launch notes that the pool will offer know‑your‑customer and anti‑money‑laundering checks, transparent payout calculations, reporting tools and 24/7 technical support, with no minimum hashrate required to join.

Zcash, launched in 2016, relies on zero‑knowledge proofs (zk‑SNARKs) to enable shielded transactions that hide sender, receiver and amount while still allowing selective disclosure to auditors or regulators. Foundry and several commentators have argued that this “privacy with a view key” model is more compatible with institutional compliance than fully opaque systems like Monero, which lack native mechanisms for selective transparency.

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At the same time, the arrival of a U.S. pool with roughly one‑third of Zcash’s hashrate raises familiar centralisation questions. Unfolded and other mining trackers have previously highlighted that Foundry USA already coordinates about 30% of Bitcoin’s global hashrate, and Mempool.space data shows the pool averaging more than 340 exahashes per second on Bitcoin alone. Adding a Zcash operation that quickly captures around one‑third of ZEC issuance further concentrates influence over block production in a single corporate group, albeit one that stresses its role in “contribut[ing] to the decentralization of Bitcoin’s hashrate” by anchoring North American capacity.

For Zcash, the trade‑off is stark: institutional capital and hashpower are flowing in through a U.S.‑regulated gateway that validates the project’s positioning as a compliant privacy coin, but at the cost of a more concentrated mining landscape. As regulators in the U.S., EU and Hong Kong tighten their grip on stablecoins, exchanges and tokenized assets — a trend explored in recent crypto.news coverage of HKDAP’s launch, MiCA implementation and the CLARITY Act — Zcash’s bet is that privacy with selective disclosure, plus a mining pool built for auditors rather than cypherpunks, is a price worth paying for long‑term relevance.

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Bitcoin’s 50% Drawdown ‘Priced In’ Quantum Computing Threat: Bernstein

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Bitcoin's 50% Drawdown ‘Priced In’ Quantum Computing Threat: Bernstein

Bernstein said Monday that Bitcoin’s selloff has already priced in much of the market’s fear around quantum computing, arguing that the threat is real but still manageable rather than an immediate existential risk.

Bitcoin’s (BTC) near 50% drawdown from its $126,198 all-time high in October 2025 is proof that the market has “priced in” several risks tied to a quantum breakthrough, partly thanks to technological progress on zero-knowledge privacy and quantum-proof cryptography that “counterbalance” the AI and quantum acceleration, Bernstein said in a Monday note shared with Cointelegraph.

The note lands two weeks after Google researchers said future quantum computers could break the elliptic-curve cryptography used across many blockchains with fewer than 500,000 physical qubits in some architectures, reviving debate over how quickly Bitcoin needs a post-quantum upgrade path. This research suggested a quantum computer could crack a Bitcoin private key in nine minutes, in a theoretical scenario, which is less than Bitcoin’s 10-minute block production time.

However, Bernstein said Bitcoin core developers have “adequate time” to determine a post-quantum path. Last week, Bernstein predicted that Bitcoin has about three to five years to prepare for a post-quantum security upgrade, Cointelegraph reported on Wednesday.

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Graph showing the risk that an on-spend quantum attack that takes 9 minutes to derive a private key succeeds against Bitcoin. Source: Google Quantum AI

Institutions will play constructive role in quantum-proofing Bitcoin

Bernstein said large institutional holders, including exchange-traded fund (ETF) issuers and corporate treasury buyers such as Strategy, are likely to play a constructive role in any eventual consensus on a post-quantum upgrade.

“We expect institutional partners with now billions at stake to play a constructive role in building consensus on the post-quantum path.”

The note also highlighted the recently introduced BIP-360 proposal and added that slower consensus from Bitcoin developers is seen as responsible behavior when it comes to a $1.5 trillion asset.

BIP-360 is a draft Bitcoin Improvement Proposal that proposes a Pay-to-Merkle-Root output type designed to reduce long-exposure quantum risk by removing Taproot’s key-path vulnerability, though it does not itself add post-quantum digital signatures.

Bernstein said BIP-360 could be implemented as a soft fork for exposed Bitcoin addresses, but added that this would still leave around 8% of the BTC supply in inactive addresses vulnerable to future quantum breakthroughs.

Related: Bitcoiners push for quantum-resistant BIP-360 upgrade as debate heats up

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Quantum-proofing Bitcoin is a social issue, not technical

The real challenge of quantum-proofing Bitcoin lies in the societal adoption element of the new standards, not the technical development, according to Arthur Breitman, co-founder of Tezos blockchain.

“The coding work could be done this afternoon,” but Bitcoin holders would still need to migrate to this new standard, Breitman told Cointelegraph during an interview at EthCC 2026.

“If Bitcoin needed to migrate in the next month, they could do it from a technical perspective […] but they can’t get everyone to migrate their key in a month, Breitman said. “It’s going to take years for people to properly migrate their keys,” he added.

Arthur Breitman, co-founder of Tezos, interview at EthCC 2026. Source: Cointelegraph

Asset manager Grayscale’s head of research, Zach Pandl, shared a similar view in a research report last Monday. He said Bitcoin’s quantum-proofing challenges are “more social than technical,” provided that its UTXO model does not have native smart contracts and that some address types are not quantum vulnerable.

However, he warned that the community needs to find consensus on how to quantum-proof wallets where the private key has been lost or is otherwise inaccessible.

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Magazine: AI has dramatically accelerated the quantum threat to Bitcoin: AI Eye