Gold nears bear market as money supply signals divergence with bitcoin
CoinDesk
Gold is approaching a bear market due to rising interest rates and inflation, while bitcoin maintains a liquidity trend.Summary
Gold is nearing a technical bear market, falling almost 20% from its January peak, despite ongoing geopolitical tensions. Higher interest rate expectations and inflation, fueled by rising oil prices, are reducing gold's appeal as a safe haven. When adjusted for the M2 money supply, gold is at levels seen during historical peaks, suggesting a potential cyclical floor. In contrast, bitcoin is consolidating, similar to its 2024 phase, and has retested its 2021 highs when adjusted for money supply, historically preceding new cycle highs. Bitcoin and gold have shown positive correlation since Wednesday, with both moving in tandem.
(Source：CoinDesk)