Gold pauses while Bitcoin surges. Risk appetite is back, and crypto’s big move may follow.
Context in a Nutshell
Gold’s pause is a headline and the kick-starter for Bitcoin’s next leg. As the safe-haven rally cools, risk appetite rekindles, and Bitcoin stands ready.
What You Should Know
After an eight-week run, gold’s rally paused, declining over 6% from its all-time high as traders booked profits ahead of the Federal Reserve’s upcoming policy week.
Meanwhile, Bitcoin jumped more than 5% in the past week, reclaiming $113,500, as the BTC/gold ratio hit the most oversold reading in nearly three years.
The pull-back in gold, which is traditionally a safe-haven asset, is being interpreted as a shift back toward risk assets, with Bitcoin benefiting from the flow reversal.
The BTC/gold ratio’s 14-day RSI dropped to 22.20, the weakest since November 2022, historically a bullish signal for Bitcoin after hedging flows rotate.
Why Does This Matter?
When gold takes a breather while Bitcoin rises, it signals both a rotation and a narrative shift. For years, Bitcoin has chased safe-haven status; now it may be reclaiming its role as the agile risk-asset of choice. With the Fed week looming, liquidity and policy will steer the outcome. The backdrop is set: now the catalyst matters.
Gold’s calm may be temporary, but Bitcoin’s pulse is growing louder. Keep your eyes on flows and policy, not just price.