- Gold hits record high as crypto market sheds $100B in value within hours.
- Peter Schiff says gold’s rally reflects safe-haven demand amid global tension and trade risks.
- Gold’s new high may signal an early cycle phase, with crypto gains still ahead.
Gold prices climbed to a fresh all-time high on Sunday, while the global cryptocurrency market saw sharp losses, with around $100 billion wiped off in market value within hours, according to market data.
The move shows a split in investor behavior, as money flowed into traditional safe-haven assets while risk assets came under pressure.
Tariff Announcement Triggers Market Reaction
The sell-off followed an announcement by Donald Trump, who said the United States would impose 10% tariffs from February 1 on imports from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom.
The tariffs were linked to opposition from those countries to a proposed U.S. purchase of Greenland. The announcement raised concerns about rising trade tensions and possible retaliation from Europe.
Bitcoin Slips, Then Stabilizes
Cryptocurrencies reacted quickly to the news. Bitcoin fell to a low near $91,900 before recovering slightly to trade around $92,800.
Ethereum and other top digital assets also declined, pulling the total crypto market capitalization down to roughly $3.13 trillion, a drop of about 2.6% on the day.
More than 245,000 leveraged positions were liquidated during the sell-off, according to industry data, as traders rushed to reduce risk.
Gold Attracts Safe-Haven Demand
As cryptocurrencies and equity futures fell, gold moved higher. The precious metal rose above $4,670 per ounce, marking a new record. Silver also gained, trading above $93.
Longtime gold advocate Peter Schiff said the rally reflected growing confidence in precious metals during periods of global tension, while warning that trade disputes could weaken the U.S. dollar’s global position.
Historical Pattern Suggests Crypto Upside May Follow
However, one analyst pointed to gold’s latest record high as a possible early signal rather than the end of the move.
In previous market cycles, gold often peaked before major gains appeared in crypto. In 2020, gold reached a new high in August, followed by a sharp rally in Bitcoin through 2021. Altcoins then surged later, delivering even larger percentage gains in many cases.
According to this view, the sequence tends to repeat: gold moves first, Bitcoin follows, and altcoins rally last. If that pattern holds, the analyst said the broader crypto rotation may still be in its early stages.
Related: US Government Says It Has Not Sold Bitcoin Forfeited in Samourai Wallet Case
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Source: https://coinedition.com/gold-hits-record-high-as-crypto-market-loses-100-billion-in-hours/
