Currently, spot gold in London has stabilized at $5100 per ounce, with an intraday increase of over 1.5%; silver performed even better, soaring 6% towards the $86 mark. The core logic behind this rebound is very clear: the U.S. retail data for December was far below expectations, and concerns about an economic recession have directly raised expectations for the Federal Reserve to cut interest rates within the year.
What signal does this send to us cryptocurrency traders?
Return of liquidity expectations: The major rebound in gold and silver is essentially a pre-pricing of 'dollar interest rate cuts'. As long as the expectations for Federal Reserve easing remain, the confidence in risk assets remains strong.
Correlation linkage: Although Bitcoin fluctuated around $69,000 today, historical experience tells us that when gold and silver first break through resistance levels, digital gold (BTC) usually follows closely behind.
Switch in risk aversion logic: Currently, the market is not only trading on interest rate cuts but also on long-term concerns about the credit system of the dollar. This narrative of 'de-dollarization' serves as a common engine for the rise of gold, silver, and cryptocurrencies.
