The fact that the price of gold has reached a new all-time high this week, trading above $2,600, seems to be heralding the occurrence of a black swan event, both for the cryptocurrency market and the global economy.
This is stated by the analyst Cryptoinsightsuk, who in a message published on X draws attention to the sustained rise that experiences the precious metal in recent months. A behaviour that has not been seen in the gold market for more than 20 years.
This development comes amid strong economic uncertainty that suggests a global recession.
“As much as I am looking forward to the rotation out of gold and into cryptocurrencies as people look for the fastest horse, I am concerned about the price of gold exploding,” notes Cryptoinsightsuk, who feels that something is happening behind the scenes in the global financial landscape.
They are fears that have to do with the possibilities of a global economic recession occurring. A situation that many economists foresee, pointing out that, despite the interest rate cut announced by the Federal Reserve (Fed) last week, there are indicators that point to a slowdown in the economy.
This is a fear that seems to be affecting many investors and that makes them –in the face of uncertainty– look for alternatives to get the maximum possible benefit. Hence, see the gold as one of the safest investments right now.
Among the economic indicators that most concern many investors is the US debt crisiswhich already reaches the astronomical sum of USD 35 billion; a figure that is difficult to pay in the short term and puts the country and the world at risk of higher inflation.
That’s why Cryptoinsightsuk fears that this somewhat gloomy outlook will lead to a possible sell-off of cryptocurrenciescaused by some unexpected event that could occur in the midst of prevailing uncertainty. The result would be a drop in the price of bitcoin (BTC).
This could explain the constant rise of the precious metal, considering that gold is the first safe place that people turn to when they are overcome by uncertainty. These are times when investments that are considered riskier are left aside, among which Cryptocurrencies are included.
However, despite the current fear, the analyst assures that cryptocurrencies will become more attractive later, as confidence in the economy grows.
As investors feel more confident about the financial situation – and as they see the dollar continue to weaken – There will be a green light for risk assetsAt that point we will see a rotation away from gold.
Cryptoinsightsuk.
Meanwhile, Gold is expected to continue to rise and that the cryptocurrency market continues to be marked by doubts about the economic situation and geopolitical tensions arising from the war conflicts between Russia and Ukraine; and in the Middle East. As CriptoNoticias has reported, the next data that emerges about all these events could define the trend of bitcoin and the stock markets.
