The investors are having difficulty in consolidating their positions as the global tension hits the markets every time the tariffs or geopolitical issues arise. The climbing tension between the country leaders generally gives birth to the loss of daily / weekly / monthly support levels according to the severity of the cases.
The problem with the markets might be the bipolar approach of the investors considering the case of overhype they experienced when the U.S. President Donald Trump was elected. The expectations were bought enough that the market reached the level of saturation when we were in the third week of January.
Of course, this is not the first time that the "buy the rumor and sell the news" situation has come true but the overpricing has thrown the investors a curveball who were waiting for an up-only trend in the markets.
Every single aggressive statement by Trump has pumped the price of Gold since his debut. The uptrend channel the price follows have been forming higher - highs with very limited retracements. The price of Gold signs the current risk adjustment in the investment portfolios of many people.
When GOLD was around $2800, its previous ATH levels, nobody would expect to see around $3000 in such a short time. Every time the investors swapped their GOLD with altcoins or stocks, they just lost some potential gains that they could have gotten if they had their GOLD positions.
Here you can see where everyone is:
This is where we all are!
This is the chart of cryptocurrencies excluding Bitcoin and Ethereum. The market capitulation of the altcoins has not broken the previous all time high level even though we believed that in the case that BTC stays above 100K, alts' marketcap could be x2 - x5 higher.
We are swinging in a small channel that is going sideways until the risk appetite in the world comes back. The higher GOLD price goes, the more pressure will be felt on the altcoins as a consequence of the safer position demands.
I expect to see this trend happen until GOLD hit $3200 in the first half of the year. Then, we may see better times in the crypto ecosystem when the global tension settles down.
What do you think about the current state of Gold and altcoins?
Share your thoughts below 👇
Hive On ✌️
Posted Using INLEO
