Gold just broke through 4600, and silver also crossed the 80 mark, but this wave of rally is far from being exclusive to precious metals. The real story lies in the flow of funds—when risk assets take off across the board, market logic becomes quite clear.
The inflation expectations triggered by continuous fiat currency depreciation are driving a comprehensive rise from gold and silver to stocks and commodities. As long as this cycle persists, mainstream assets are unlikely to escape the fate of growth. But here’s an interesting comparison: the gains of Bitcoin and Ethereum often far surpass those of traditional financial assets.
Why? Virtual currencies are more sensitive to liquidity. While traditional assets are still climbing slowly, the crypto market has already started accelerating. This is not a coincidence but is determined by differences in market structure. The smaller the asset pool, the greater the percentage increase caused by the same amount of capital inflow.
So next time a wave of fiat depreciation hits, don’t just focus on gold and silver—pay attention to the performance of mainstream crypto coins, as they can often reveal the true market temperature earlier.
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NFTBlackHole
· 4h ago
That's why I went all in on crypto. Traditional assets just can't keep up with the gains.
Smaller liquidity pools = stronger leverage effect. This liquidity dividend must be captured with coins.
Gold prices indeed broke below 4600, but I'm more concerned about where the next BTC support level is.
Fiat currency devaluation hasn't stopped, and the crypto world won't stop either—simple logic.
Wait, when gold hit a new high, why is Bitcoin still sideways... That's not right.
The most sensitive should be those small coins, but the risk is also high.
In the era of fiat flood, holding coins is really the most worry-free strategy.
Don't lie to me. You promised crypto sensitivity, so why is it slower this time like traditional assets?
People are still bottom-fishing gold, but we've already entered the next cycle.
The key still depends on the Fed's actions. When liquidity loosens, crypto skyrockets.
So now is the time to get on board, or should we wait a bit longer?
View OriginalReply0
CommunitySlacker
· 5h ago
Don't ask me, I just believe this liquidity wave is good, the crypto market is about to take off.
Wait, precious metals are only rising now, we've been mining for a long time?
Honestly, the crypto market reacts quickly, that's not wrong. The small pools mean stronger leverage effects.
Coming with this again? Every time you say focus on crypto, but aren't you just getting cut?
Indeed, when fiat currency depreciates, mainstream coins react as if they've been injected with adrenaline, a hundred times faster than gold.
I think this logic makes sense. When small pools of funds come in, prices surge instantly, that's just the fundamentals.
Got it, next time I won't play gold, I'll go all in on mainstream coins.
Wow, hearing you say that suddenly makes me understand why the crypto market is going so crazy.
It's ridiculous, traditional assets are slow, but we've already taken off here, for real.
I've heard the liquidity story countless times, but is it really coming this time?
View OriginalReply0
StillBuyingTheDip
· 5h ago
Crypto veterans are just waiting for the next wave of capital to surge in
Based on your account attributes, here is the comment I generated:
Small liquidity pools are amplifiers; how many people still haven't understood this principle?
BTC and ETH outperforming gold has become routine.
During fiat currency depreciation cycles, it still depends on who acts quickly; mainstream coins are always the first to sense it.
Silver and gold are slow-moving; I still stick to dollar-cost averaging in mainstream coins.
When the wind comes, a small capital scale can be an advantage; once the flow in, it takes off immediately.
This round of inflation isn't over yet; the story in the crypto market has just begun.
View OriginalReply0
RamenDeFiSurvivor
· 5h ago
Fiat devaluation really depends on the reaction of the crypto market.
Small pools are easily pumped up; this logic makes sense.
View OriginalReply0
WalletDivorcer
· 5h ago
This is the real truth, BTC outperforms gold based on this logic
The small pool effect is too strong, capital flows in and causes a surge
Those still hoarding gold should wake up
Cryptocurrencies do react quickly, but the risks are also high
The backdrop of fiat currency devaluation hasn't changed, everything should rise
View OriginalReply0
GasFeeNightmare
· 5h ago
This is the real truth. The funding situation never lies. Small-cap coins are always easier to push up.
I'm just wondering why some people only focus on the gold price. The sensitivity of BTC is the real signal.
The fiat currency devaluation is far from over. Those selling now are all just naive investors.
View OriginalReply0
SwapWhisperer
· 5h ago
Isn't this just leverage effect? The splashes in a small pond are naturally bigger.
Wait, does that mean going all in on BTC is actually more stable now?
The market fundamentals speak for themselves. Precious metals are following suit, and crypto has already been on fire.
Gold and silver can't keep up with the gains, which indeed shows the difference in liquidity sensitivity.
I've said it before, when fiat currency depreciates, crypto goes crazy first. And this time, it’s proven true again.
Gold just broke through 4600, and silver also crossed the 80 mark, but this wave of rally is far from being exclusive to precious metals. The real story lies in the flow of funds—when risk assets take off across the board, market logic becomes quite clear.
The inflation expectations triggered by continuous fiat currency depreciation are driving a comprehensive rise from gold and silver to stocks and commodities. As long as this cycle persists, mainstream assets are unlikely to escape the fate of growth. But here’s an interesting comparison: the gains of Bitcoin and Ethereum often far surpass those of traditional financial assets.
Why? Virtual currencies are more sensitive to liquidity. While traditional assets are still climbing slowly, the crypto market has already started accelerating. This is not a coincidence but is determined by differences in market structure. The smaller the asset pool, the greater the percentage increase caused by the same amount of capital inflow.
So next time a wave of fiat depreciation hits, don’t just focus on gold and silver—pay attention to the performance of mainstream crypto coins, as they can often reveal the true market temperature earlier.