Bitcoin and gold prices have both declined as markets anticipate rising interest rates, which negatively impact non-yielding assets. Bitcoin has dropped approximately 7% this week, while gold has fallen below $4,200 per ounce. The recent price rebound is largely driven by short covering, with over $500 million in bearish bets liquidated in the past week, yet spot demand remains weak. Traders are closely watching Wednesday's U.S. inflation data and the policy stance of new Federal Reserve Chair Kevin Warsh. Persistently high inflation could lead to sustained high interest rates, further pressuring risk assets. The simultaneous decline of Bitcoin and gold challenges their role as macroeconomic hedges.