Gold is skyrocketing! BTC breaks through $88,000, JD enters crypto payments! What trends might occur in the future financial market?
Gold has shown an accelerating trend in recent days, strongly breaking through the 3400 mark, with an increase of over 30% since January this year.
It can be seen that the current global funds are mainly focused on risk aversion, and the only physical asset with strong risk-averse properties is gold.
Although no one can predict the peak of gold at this stage, the funds that have previously flowed into gold were mainly for risk-averse purposes. Recently, there has been a trend of retail investors investing in gold at high prices.
It is worth mentioning that Bitcoin, known as "digital gold", has also been steadily rising recently, breaking through $88,000 yesterday. It has increased nearly 20% from the low of $74,500 on April 7.
In the past few days, despite the downward trend in U.S. stocks, Bitcoin has still risen against the trend, showing an initial decoupling from U.S. stocks.
So, will cryptocurrencies, which have been in a downward trend for several months this year, welcome a reversal and become a favored safe-haven asset for funds that have nowhere to go or are overflowing?
First of all, last year, individuals officially entered the cryptocurrency market when Bitcoin was promoted through U.S. stock ETFs and Hong Kong's strong layout in Web3; under the premise that U.S. stocks are about to enter a cyclical bear market, cryptocurrency is viewed as a new liquidity pool for the dollar, welcoming a large influx of funds.
For cryptocurrencies to achieve the above conditions, they must maintain independence and decouple from U.S. stocks, unaffected by their cyclical downward trend. Unfortunately, since the peak of U.S. stocks, Bitcoin has not shown a divergence trend from U.S. stocks.
Only in the past few days, as gold, a too singular safe-haven asset, has been pushed to a high position, has Bitcoin risen against the trend, slightly revealing a tendency to no longer follow U.S. stocks.
However, against the backdrop of gold's fierce rise, Bitcoin's initial decoupling trend at this time seems somewhat forced, as it is merely pushed to the forefront for needed purposes; essentially, it does not possess a strong consensus-driven risk-averse property.
The trend has already occurred, and one should not forcibly impose personal judgment; rather, it is important to understand one's starting point while observing or following the trend.
However, to promote a comprehensive recovery in the crypto market, the extent of the dollar's decline may still be far from enough, and further observation is needed.
