Recently, the global financial markets have been stirred by a piece of news. On October 17, when asked whether he would continue to maintain high tariffs on China, Trump gave a negative answer. This statement immediately triggered a strong rebound in the US stock market, rapidly reversing from a nearly 1% fall to ultimately close not only recovering lost ground but also achieving an increase of nearly 1%.



This event has had a significant impact on the safe-haven asset market. After experiencing a rapid rise, the gold market saw its largest recent correction, with a drop of more than 2% at one point. This phenomenon highlights the current obvious inverse relationship between gold and crypto assets.

It is worth noting that before this, gold had become the first major asset in human history to break through a market value of $30 trillion. Even more astonishing is that this enormous volume achieved a growth of 10% to 20% in just a month or two, and it is expected to double within the year, aptly described as "the elephant dancing." The small fluctuations in the gold market are almost equivalent to the overall market value of Bitcoin (BTC), which is approximately $2 trillion.

This series of market changes reveals two important pieces of information:

First of all, the market is not lacking in funds; liquidity is abundant like a vast ocean. The recent pulse-like acceleration in the rise of gold is a clear proof.

Secondly, the fluctuation of gold prices has intensified, and a rapid rise may indicate the arrival of a temporary peak. With the easing of trade frictions between China and the United States, especially with the potential alleviation of the Russia-Ukraine conflict, the gold market may face adjustments. It is important to remember that there are no assets that can rise forever. When a sustained increase becomes a general consensus, it often means that an adjustment is imminent.

In this case, liquidity may shift towards the cryptocurrency market. If enthusiastic liquidity slightly flows into the cryptocurrency sector, it would not be difficult for Bitcoin to double again.

Currently, the market is patiently awaiting the final results of several important settlement events. The changes in future asset allocation patterns are worth continuous attention. Investors should remain vigilant, closely monitor market trends, and adjust their investment strategies in a timely manner.
BTC4.1%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
TokenSherpavip
· 9h ago
actually, if you examine the historical data, this liquidity shift was predictable. fundamentally btc>gold
Reply0
CryptoTherapistvip
· 19h ago
feeling high market anxiety rn... time for some mindful breathing between trades tbh
Reply0
ponzi_poetvip
· 10-18 16:52
BTC is going to pop champagne this year.
View OriginalReply0
StablecoinEnjoyervip
· 10-18 16:46
btc要To da moon咯
View OriginalReply0
ForkItAllvip
· 10-18 16:39
When gold falls, just buy coins, who doesn't know that?
View OriginalReply0
ContractFreelancervip
· 10-18 16:32
The btc bull run is coming.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)