BTC nearing ATH, Gold also continuously at ATH. Is the market oversaturated with money?

In reality, gold continuously reaching peaks is not necessarily a sign that the market is overflowing with money, but largely reflects investors' concerns about economic instability and international conflicts. Gold, with its traditional role as the safest haven asset in history, is attracting cash flows from investors who wish to preserve value rather than engage in risky investments. This is the main reason for gold's price increase, not because of excess liquidity.

For Bitcoin (BTC), the price increase dynamics are quite different. Currently, BTC's growth is mainly due to cash flows shifting from altcoins to BTC rather than from new capital. Liquidity from altcoins has been reduced to push BTC up, which is why the prices of altcoins have not increased significantly and may even drop sharply if BTC is corrected. Another reason is the phenomenon of a "liquidity trap," where BTC's price rises when there are many shorts, forcing market makers (MMs) to push BTC's price up to profit and maintain control. Expectations about external factors such as Bitcoin ETF news, wars, or U.S. elections are also creating a short-term FOMO wave, driving BTC to rise even more.

However, with pressure from these factors, the likelihood that BTC and gold will face corrections in the near future is high. When liquidity is weak and instability is high, the market is prone to significant declines, especially with assets that do not have solid support levels.

Personally, MGS will still prioritize finding Short entries. Altcoins are also not in an attractive position to buy at this time. MGS will have a separate article to analyze the right time to buy altcoins.