$2.7 trillion evaporates from gold—Is liquidity about to flow into Bitcoin?

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Cryptoticker2025/10/28 03:54

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By:Xue Wang

Over $2.7 trillion in gold market value disappeared within just one week. As investors shift their risk, bitcoin may become the next major liquidity magnet.

Gold Market Analysis: Major Downtrend Signal Shift

Gold has just experienced one of its largest weekly losses in recent years—over 2.7 trillion USD in market value evaporated. Charts show that XAU/USD has broken through the critical support zone near 4,000 USD, displaying strong bearish momentum.

RSI (29.88) confirms severe oversold conditions, indicating panic selling, while the MACD remains deeply bearish with no immediate signs of reversal. The next major support is around 3,900 USD; unless gold quickly recovers the 4,000 USD line, it may further decline to 3,850 USD.

This decline reflects a broader macro shift. Investors are exiting defensive assets like gold and reallocating into risk trades—especially stocks and digital assets.

US Stock Market Surges—Risk Appetite Returns

The US stock market is surging, with major indices hitting all-time highs, led by tech stocks. Investors are betting on a soft landing and economic expansion under the latest macro signals from Washington.

Historically, when Wall Street rallies, liquidity is not confined to traditional markets—it flows into cryptocurrencies. Traders are shifting funds from safe-haven assets to high-risk, high-reward assets, and bitcoin is directly in the path of this capital flow.

Crypto Market Outlook: Preparing for the Next Rally

The total crypto market cap chart confirms growth momentum. After a strong rebound above 3.72 trillion USD, the market has stabilized around 3.84 trillion USD.

Technical indicators show resilience:

RSI (73.67) remains elevated, indicating overbought conditions but also strong buying interest.

MACD remains positive, suggesting the bullish structure is intact.

If the crypto market holds above 3.72 trillion USD, the next breakout could target 3.9–4.0 trillion USD, pushing bitcoin to new highs as capital shifts from gold to digital assets.

Final View

The historic 2.7 trillion USD drop in gold marks a significant moment of capital reallocation. As Wall Street rises and macro sentiment shifts toward risk appetite, bitcoin and the broader crypto market are perfectly positioned to benefit from this liquidity transfer.

The situation is clear:
Gold is bleeding, stocks are booming—cryptocurrencies are the next beneficiaries.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.