Bitcoin and Gold Reach Peaks: Is the Market Overflowing with Money?

The continuous peaks in gold do not reflect an excess of liquidity, but are mainly due to concerns over economic instability and international conflicts. Gold is a safe-haven asset, attracting capital flows from investors looking to preserve value.

Meanwhile, Bitcoin (BTC) prices are rising due to capital flowing from altcoins, rather than new money entering the market. The price increase is also influenced by a 'liquidity trap' as short positions are liquidated. Expectations about Bitcoin ETFs, wars, and the US elections are also creating a short-term FOMO wave.

In terms of technical analysis, I personally believe BTC will have a trap pullback before entering a longer correction phase until early next year.

Personally, MGS prioritizes looking for short opportunities and will analyze the timing for buying altcoins in the next article.