A massive underwater gold reserve has reportedly been discovered in China, and it could significantly impact global markets.
To understand why this matters, remember one basic rule: markets run on supply and demand. Gold is expensive not because it’s shiny or strong, but because it’s rare. Limited supply keeps demand—and prices—high.
When a large new gold reserve is discovered, scarcity decreases and supply increases. If more gold enters the market, prices can fall. Reports suggest this reserve could hold around 3,900 tons of gold—about 26% of China’s total reserves. If accurate, this would be a major development, especially since China is already the world’s largest gold producer.
Now, consider crypto. Gold and Bitcoin are often compared as stores of value. If gold becomes less scarce and demand weakens, investors may shift their money elsewhere. Bitcoin is a common alternative.
That means reduced gold demand could eventually boost Bitcoin demand. In that scenario, higher BTC price targets over the next couple of years become more plausible—not due to hype, but basic market dynamics.
