What happens with the markets? Will something happen? $BTC $XAU $XRP #CZAMAonBinanceSquare #USPPIJump
Is an unknown event approaching? Here is a summary:
1. The collapse of Bitcoin: "Panic selling and liquidity"
* Goodbye to "Digital Gold": In this crisis, Bitcoin did not act as a safe haven. Investors sold it massively to obtain cash (liquidity) due to fears of a real military conflict.
* Exit of Institutions: The large funds (ETFs) that pushed the price to nearly $100,000 are taking profits, which accelerated the fall towards $80,000.
* Fed Factor: Rumors that the Federal Reserve will maintain high interest rates to strengthen the dollar reduce the appeal of risk assets like cryptocurrencies.
2. Gold: "Rise due to fear, fall due to the dollar"
* The Record: It rose to nearly $5,600 because it is the only asset that everyone trusts when there are threats of war or global political instability.
* The Current Fall: Once the initial panic calms down a bit and the dollar strengthens (thanks to new policies in the U.S. and the appointment of Kevin Warsh at the Fed), gold loses strength. If the dollar is "king", gold falls.
3. Has it happened before?
Yes, it is a repetitive cycle. Whenever there is an unexpected crisis (like at the beginning of the pandemic in 2020), people sell everything (including gold and BTC) to have dollars. Then, gold is the first to recover due to its historical value, while Bitcoin takes longer because it depends on the return of risk appetite.
Is an unknown event approaching? Here is a summary:
1. The collapse of Bitcoin: "Panic selling and liquidity"
* Goodbye to "Digital Gold": In this crisis, Bitcoin did not act as a safe haven. Investors sold it massively to obtain cash (liquidity) due to fears of a real military conflict.
* Exit of Institutions: The large funds (ETFs) that pushed the price to nearly $100,000 are taking profits, which accelerated the fall towards $80,000.
* Fed Factor: Rumors that the Federal Reserve will maintain high interest rates to strengthen the dollar reduce the appeal of risk assets like cryptocurrencies.
2. Gold: "Rise due to fear, fall due to the dollar"
* The Record: It rose to nearly $5,600 because it is the only asset that everyone trusts when there are threats of war or global political instability.
* The Current Fall: Once the initial panic calms down a bit and the dollar strengthens (thanks to new policies in the U.S. and the appointment of Kevin Warsh at the Fed), gold loses strength. If the dollar is "king", gold falls.
3. Has it happened before?
Yes, it is a repetitive cycle. Whenever there is an unexpected crisis (like at the beginning of the pandemic in 2020), people sell everything (including gold and BTC) to have dollars. Then, gold is the first to recover due to its historical value, while Bitcoin takes longer because it depends on the return of risk appetite.
