Why does Gold rise while BTC falls, and Gold falls while BTC also falls? Where does the money go? 📉🔥
Don't look at $BTC as "digital gold" in theory. In reality, BTC is like a "hybrid child" between Gold and technology stocks. This "wishy-washy" nature is why:
1. In times of chaos: Gold is the "Elder", BTC is the "Younger Brother"
When there are geopolitical upheavals or bank failures, sharks prioritize survival. They withdraw money from volatile assets (BTC) to invest in Gold.
Reason: Gold has physical value, can be held, and is not afraid of hacks or power outages. When digital trust wavers, people choose "antiques" of a thousand years instead of risky code (Risk-on).
2. In times of liquidity collapse: "We all step back together"
There are sessions when both Gold and BTC are in the red. Why? That is Liquidity Crisis. When stocks crash, large funds face Margin Calls. They are forced to sell off good liquidity assets (Gold, BTC) to cash out and stabilize prices. At this time, "Cash is King", whether to shelter or not, they must sell to survive.
3. So where does the money flow?
Money doesn't disappear, it just circulates:
Into USD (DXY): In times of instability, USD is the final safe haven. When DXY skyrockets, both Gold and BTC "groan" under pressure.
Government bonds: Instead of holding sleepless BTC, sharks buy bonds to enjoy absolutely safe interest from the government.
Defensive stocks: Money flows into sectors that deal with "basic necessities" like electricity, water, and healthcare. No matter how bad the economy gets, people still need to eat and take medicine.
In summary: Bitcoin is still "growing up", not resilient enough to replace $XAU during extreme events. When things are good, everyone gathers both, but when real fear strikes, they still prioritize "holding Gold for safety" or tightly clutching cash.
