Financial markets have seen a surge of interest after gold rose by more than 6% in just ten days, reaching a new record level of $3,508 per ounce before stabilizing around $3,482. This rapid rise has sparked a broad discussion about its impact on bitcoin, and whether it represents a negative signal or an opportunity for a new ascent.
Gold shines with the flow of global liquidity
Analysts at Alpha Extract believe that the rise in gold is not an isolated event, but is part of a recurring cycle linked to global liquidity. With liquidity expanding by more than $10 trillion over the past week, risk assets—such as gold and bitcoin—have begun to attract investors' interest.
Concerns about the independence of the Federal Reserve, rising long-term bond yields, and expectations of interest rate cuts despite inflation remaining above 2%, are all factors that have driven investors towards gold as a safe haven.
Although some short-term technical indicators reflect weakness in momentum, analysts see that the peak has not yet been reached, while medium-term models suggest caution and the possibility of approaching a turning point.
Are gold and bitcoin complementary or competitive?
The biggest debate is between those who see the rise in gold as positive news for bitcoin, and those who see the opposite.
Marty Party, the macro analyst, confirms that gold is leading the current cycle, and that bitcoin will follow suit when prices stabilize.
Other analysts like Macroscope believe that the scenario could repeat itself as it did previously: when gold rose to the range of $3400 – $3500, bitcoin surged powerfully to new record levels.
On the other hand, veteran critic Peter Schiff emphasizes that the gains in gold and silver come at the expense of bitcoin, considering that the breakthrough in gold and silver represents a bearish signal for the digital currency.
Wider transformations in the financial system
Balaji Srinivasan, former CEO of Coinbase, pointed out that the dollar's share in global reserves has dropped to only 42%, while gold continues to strengthen its position. This may open the door for bitcoin to be the next beneficiary amid the ongoing changes.
Summary
The rise in gold has rekindled the old debate: do the yellow metal and bitcoin move in the same direction as complementary hedges, or do they compete for safe-haven flows?
With the expansion of global liquidity, rising financial risks, and the decline of dollar dominance, both assets—gold and bitcoin—seem poised to play larger roles in shaping the contours of the new global financial system.
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