The sudden decline in gold and Bitcoin (BTC) revealed the fragility of markets that, despite weeks of mixed signals, are once again reacting in sync to global uncertainty.
The declines in both assets suggest that investors are reevaluating their strategies in an environment characterized by geopolitical tensions, increasing fiscal pressures, and sentiment that has rapidly shifted from optimism to extreme fear.
In the case of gold, the chart below reflects a notable pullback from the highs reached on September 13th. Precious metal prices fell towards the USD 4,000 area. I lost all the momentum I had built up since day 9.
Gold's recent decline contrasts with an upward trend that has continued in recent weeks amid growing concerns about the fiscal health of several large economies, including Japan, the United States, France and Italy. Robin Brooks, a senior fellow in the Global Economic Development Program at the Brookings Institution.
The decline, in turn, slowed the momentum gained by the reopening of the US federal government, which was shut down for 43 days until President Donald Trump signed legislation last Wednesday, November 12, to restart government functions.
Daniel Arees, a Venezuelan economist specializing in Bitcoin and digital assets, explained to CriptoNoticias that the push for gold in recent days has intensified after the reopening of the US government. It coincided with the “resumption of war operations.”
Indeed, war tensions resumed after the federal government resumed. For example, missile attacks from Russia were reported in Ukraine. in parallel, The United States strengthened its military presence in the Caribbean.
In that sense, Mr. Arraez reflected as follows. Gold was a 'safe haven against these scenarios'This is because investors' preference is toward stable assets with less “risk.”
However, the recent sharp correction may correspond to «.overshoot« In other words, the price moves beyond the valuation target Then correct if the market's initial expectations were not metexplained Mr. Arraez.
steeper decline
Meanwhile, Bitcoin experienced an even steeper decline. The graph shows the decline accelerating to levels close to USD 100,000, erasing the gains sustained since the first week of September.
Selling pressure increased because “much of the bullish news was already reflected in the price,” said Greg Magaddini, director of derivatives at Amberdata. This leaves digital currencies exposed to bearish catalysts.
Magadini explained that operators are placed too long. That would have exacerbated the selloff as demand weakened.
Arraez agrees that there are additional factors that will intensify the correction in Bitcoin. In the discussion, he mentioned the situation of Strategy Inc., whose stock price had plummeted to a level below the BTC holdings. There are growing concerns that Bitcoin will be forced to be sold to rebalance its balance sheet.
“Expectations surrounding this event could cause a snowball effect for companies that copy their financial models,” he said. This, coupled with the impact of Michael Burley's fund closure and his warnings about the potential for bubbles in technology and artificial intelligence, will likely cause short- and intermediate-term investors to reduce their exposure to assets related to the sector, such as Bitcoin.
Despite the size of the decline, Arraez believes the move may be temporary. “The market is under extreme fear and historically we have seen rebounds in similar areas,” he said. “Ten years ago, a daily 10% correction in Bitcoin was a normal trading day,” he recalled.
Precious metals continue to show solid performance overall, but Bitcoin market faces repositioning That could last in the short term.
The evolution of both assets will largely depend on upcoming macroeconomic data and geopolitical stability. For now, markets are oscillating between caution and volatility. The coming weeks will bring mixed signals regarding the prevailing direction.
