Gold Sheds $2.5T Since 2013, Bitcoin Dips Amid Fear
Gold suffered its steepest two-day drop since 2013, plunging 8% and wiping out $2.5 trillion in market value. Swiss investor Alexander Stahel attributed the crash to FOMO-driven buying followed by mass profit-taking and forced sell-offs. Meanwhile, Bitcoin fell 5.2% intraday before closing down 0.8%, even as Bitcoin spot ETFs attracted $142 million in inflows. The Crypto Fear & Greed Index slid to its lowest level since December 2022, signalling extreme market fear. Deutsche Bank analysts highlighted that both digital and traditional safe-haven assets remain vulnerable to sudden reversals. Traders should watch gold volatility and the Fear & Greed Index as key indicators of risk sentiment and potential trading opportunities.
Bearish
The sharp gold plunge intensified market fear, triggering a sell-off in Bitcoin that led to intraday declines and pushed the Crypto Fear & Greed Index into extreme fear territory. Although spot ETF inflows demonstrate continued institutional demand, the prevailing risk aversion is likely to exert short-term bearish pressure on Bitcoin’s price. Traders should prepare for heightened volatility and potential further pullbacks before longer-term support from sustained ETF demand emerges.