Gold had a thrilling night last night.
Just as it peaked at $5, it plunged back to $3,334. Don’t be fooled by the small fluctuation that’s like light rain; it’s a clear signal for the crypto market. Experienced investors know there’s something to this!
Gold and Bitcoin, this old rivalry, have been singing opposite tunes lately. When gold prices drop, it often indicates a cooling of market panic, and investors are more willing to invest in high-risk assets, making it easier for cryptocurrencies to catch the overflowing wealth!
Looking closely at this decline, it has three layers of meaning:
Firstly, the expectation of the Federal Reserve lowering interest rates is still fermenting, but funds do not want to cling to gold and other slow markets and are urgently looking for higher-yield battlefields.
Secondly, global stock markets have recently warmed up collectively. Traditional hot money has chosen the latter between gold and stocks. The spillover effect will eventually reach the cryptocurrency market.
Thirdly, from a technical perspective, gold is stuck at a key resistance level. It's normal for short-term profit-taking to occur, and this money might quickly flow into the crypto market.
Right now, you should pay close attention to two barometers:
Whether Bitcoin's safe-haven attribute has been reactivated; if gold prices fall and it rises against the trend, it’s solid evidence of a big capital shift.
The change in stablecoin market capitalization is more important. USDT just broke 160 billion; if it continues to inflate, it means directly injecting blood into the crypto market.
Retail investors should remember three don'ts and three musts:
Don't chase highs or cut losses, don't heavily invest in worthless coins, and avoid high leverage.
You should gradually allocate Bitcoin and Ethereum, ambush undervalued platform coins, and reserve funds for bottom fishing.
Pay attention to converging locked positions, guiding you to position capital rotation in the gold pit!
$ETH
