The extreme volatility of Gold, which briefly touched $5,600, plummeted to $4,400, and is now strongly rebounding back to the $4,800 area, is not a sign of the trend ending, but rather a classic signal of "Liquidation Shakeout". This V-Shape Recovery movement indicates a massive institutional buying wall below, which has absorbed the panic selling to clear leverage before continuing the upward trend.
Forensic evidence from on-chain PAX Gold (PAXG) data confirms this Flight to Safety thesis. The "God Candle" is clearly visible on PAXG's dominance, which soared vertically to 0.093%, accompanied by a surge in Market Cap to $2.23 Billion. This proves that smart liquidity is not cashing out to the devalued fiat currency, but rather emergency hedging into Digital Gold amid the market storm.
Conversely, the narrative of Bitcoin as "Digital Gold" is facing severe testing. The charts show that Bitcoin and Ethereum are losing purchasing power significantly against Gold, with the PAXG/BTC ratio skyrocketing to 0.069 and PAXG/ETH breaking through to 2.33. Physical Gold is now proving to be more powerful, even setting all-time highs (ATH) against various world currencies such as Euro, Won, and Lira.
Conclusion: Market structure indicates we are still on the path of a Supercycle Bullish. Stay focused on spot accumulation and avoid high leverage in this volatility phase.
