Massive Sell-Off Hits U.S. Markets as Investors Rush to Gold and Bitcoin
Wall Street faced another wave of forced liquidations on Wednesday, with over $1.5 trillion in market value wiped out, following Federal Reserve Chair Jerome Powell’s warning of increased market turbulence ahead. Ongoing delays in trade war negotiations have only intensified investor anxiety, prompting a sharp move into safe-haven assets like Gold and Bitcoin.
Amid concerns over a weakening U.S. dollar and looming inflation, savvy investors are turning to Gold to safeguard their capital. The current macroeconomic uncertainty has reignited interest in both traditional and digital stores of value.
Gold Prices Surge as Global Markets Shudder
Gold prices soared during Wednesday’s North American session, fueled by global market jitters tied to prolonged trade disputes. Within just 24 hours, Gold climbed more than 3%, currently trading near $3,337, reflecting a powerful uptrend that began with its bullish breakout in October 2023.
This upward momentum is largely driven by aggressive accumulation from central banks worldwide, led by China, as they diversify reserves away from fiat currencies.
Bitcoin: The Digital Gold on the Rise
Often referred to as "digital gold," Bitcoin has proven its resilience through economic crises, from the 2008 financial collapse to the COVID-19 pandemic. According to recent insights reported by Coinpedia, the Federal Reserve now recognises Bitcoin as a legitimate store of value, not a rival to the U.S. dollar.
With government interest intensifying, there are reports that Bitcoin may be integrated into broader economic strategies to help mitigate national debt concerns. This growing institutional acceptance is setting the stage for a potential surge.
Bitcoin and Gold: A Historic Correlation?
From a technical analysis perspective, Bitcoin has historically entered parabolic bull runs shortly after Gold prices hit peak levels. If this pattern repeats, and with Gold on track to reach $3,500 or more depending on how the trade war unfolds, Bitcoin could be on the cusp of its next major rally.
Currently, the Relative Strength Index (RSI) on the three-month Gold chart shows a minor retreat from a high of 93 to around 83, signalling strong bullish momentum still in play but possibly due for a consolidation.
With macroeconomic uncertainties mounting, Gold and Bitcoin continue to shine as the top hedges against inflation and market volatility. As central banks, institutional investors, and even governments begin to lean on these assets, the next wave of price discovery could be closer than we think.
