✨ The precious metals market has just experienced a strong shake-up. On December 29, gold prices fell by more than 5%, marking the largest daily drop in over 2 months. Silver, platinum, and palladium also plummeted by 15–16% after a period of overheating and reaching new highs in the month.
✨ Notably, crypto is moving in the opposite direction. While gold and silver are being sold off, $BTC at one point surpassed $90,000, while $ETH approached $3,000. Some traders believe that capital is temporarily leaving precious metals to seek opportunities in riskier assets, especially crypto.
✨However, the rebound trend in precious metals has not yet been broken. Gold continues to hold above the 200-day MA for approximately 550 sessions, with an increase of about 135% in the current cycle. History shows that such sharp declines are usually "cooling down" events rather than a reversal of the long-term trend.
✨On the other hand, many technical analyses indicate bearish divergences in gold and bullish divergences in the $BTC/gold pair, suggesting Bitcoin may outperform gold in the near future. The big question now is: is this just short-term volatility or the beginning of a major shift in capital flow between gold and crypto?
🛑 THIS POST IS NOT INVESTMENT ADVICE, PLEASE REVIEW AND STAY SAFE IN THE MARKET. 😘