Gold prices have skyrocketed to the point where even the neighbor is rummaging through boxes for gold earrings. Are you also nervously checking the market while feeling uneasy? As someone who has been watching the crypto and traditional markets for eight years, I can say: the current surge in gold prices is not a 'wealth signal' at all, but rather a 'risk litmus test' handed to all investors — ponder it, reflect on it.
After 40 years of trends: the 'crisis code' hidden behind the bull market
Don't just look at how gold is rising now; look back at history to understand — every time gold can create a 'national frenzy,' it almost always steps on the 'minefield' of the global financial market. The gold craze from 1971 to 1980 happened to coincide with the 1974 global financial crisis; the bull market in gold that started in 2001 is even more obvious, as the financial turbulence in 2008 pushed gold prices to new highs. The phenomenon of 'bull market accompanied by crisis' is practically a law written into the genes of the asset market.
What worries me most right now is not the gold price itself, but the trend of the dollar. You have to know that the first wave of crazy rises in gold in 1971 was primarily due to the collapse and devaluation of the dollar. This risk is really not me being alarmist: even if we haven't reached a collapse stage, if subsequent policies lean towards a weak dollar, market expectations have long been set—right now, the gold price is rising so fiercely, it’s actually already 'eating' the expectations of dollar devaluation in advance.
Will the crypto market follow the trend of 'copying homework'? These 3 points must be closely monitored.
As a crypto analyst, I must remind everyone: the logic of gold has both similarities and differences in the crypto market. First, don't expect a linear thinking of 'when the dollar drops, crypto must rise'—just like gold might go 'buy on expectations, sell on facts', the crypto market is crazier; once the dollar truly drops, it might surge first before crashing, trapping those who chased high. Secondly, if a crisis really breaks out, don't rush to bottom-fish any assets initially, whether it's gold or mainstream cryptocurrencies, everyone will first sell assets for cash, and a short-term drop is highly probable; however, referring to the last two rounds of crises, in the mid-to-late stages of a crisis, assets that have both safe-haven and scarcity will still peak, so choosing the right targets is more important than anything else.
Here's the key: never stubbornly cling to a single asset! A crisis is both 'danger' and 'opportunity'; at that time, stocks and commodities will drop to low prices, and quality small coins in the crypto market might also have opportunities. Diversified observation is much more reliable than holding onto gold or a single coin.
What we should do now is not to chase high prices, but to 'accumulate bullets'.
To be honest, I can't guarantee when the crisis will come, but the crazier the market rises, the more we need to stay calm. The most important thing right now is not to stay up late watching the market, but to accumulate more capital—otherwise, when the opportunity really comes, while others are picking up chips at a low price, you'll only have memes without bullets, and that will be a real regret.
I'm not one for empty talk; if there are any signs of changes in the market, such as signals from the dollar trend or key support levels appearing in the crypto market, I will share it with you immediately. Following me is definitely the right choice; let's be 'smart slackers' during this wave of volatility and avoid being the chives cut by the market—after all, when it comes to making money, being steady is better than anything else. Don't you agree?
