There is an interesting phenomenon—gold price fluctuations often serve as a "warning light" for the crypto market. Let's take a look at how history has played out.

During the pandemic in 2020, gold was the first to hit a historical high, followed closely by Bitcoin skyrocketing from a few thousand dollars to over 60,000, with the increase completely outpacing gold. In 2024, when the Federal Reserve started a rate cut cycle, gold once again broke records, and Bitcoin subsequently surged from over 60,000 to break the 100,000 mark. What about the bull market from 2016 to 2017? Gold steadily rose, while Bitcoin skyrocketed from a few hundred dollars to 20,000, clearly showing funds flowing into the crypto market.

But this pattern is not ironclad. There are plenty of counterexamples—during the 2022 bear market, gold held up relatively well, while Bitcoin plummeted over 70%, completely out of sync. In the 2018 crypto winter, Bitcoin fell from 20,000 to 3,000, but gold didn't show any significant volatility. Even more painfully, by the end of 2025, gold's gains exceeded 55%, while Bitcoin, from its high point, fell 30%, which is almost a reverse operation.

So, the two don't always dance in sync. Often, their decoupling is obvious, with Bitcoin being more influenced by technological progress and policy changes. Gold can indeed be a leading indicator, but it's definitely not a universal formula—more of a phenomenon worth observing.