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Gold’s Rally Could Be Bitcoin’s Next Catalyst, But Risks Still Linger
Yahoo Finance· 2025-12-25 08:29
Group 1 - Bitcoin price action has shown mixed signals, reflecting uncertainty in global markets, with gold's recent strength potentially positioning Bitcoin for a rally if historical correlations hold [1][2] - Bitcoin has increasingly mirrored gold's trajectory, reinforcing its role as a macro-sensitive asset, with historical data indicating that sharp advances in gold prices often precede upward movements in Bitcoin [2][3] - Sustained rallies in gold have coincided with increased Bitcoin demand from both retail and institutional investors, indicating a pattern of seeking asymmetric returns [3][4] Group 2 - In October, Bitcoin experienced a sharp decline alongside gold due to intensified macroeconomic pressures, including higher bond yields and tighter financial conditions [4][5] - On-chain data indicates caution among Bitcoin holders, with increased transfers to exchanges suggesting profit-taking behavior or preparation for downside protection during uncertain market phases [5][6] - Bitcoin's price was $87,773, below the $88,210 resistance, with the primary objective being to reclaim the $93,576 level before year-end, contingent on improved market conditions [7][8] Group 3 - A confirmed breakout for Bitcoin would require flipping the $88,210 resistance into support, with sustained movement above $90,308 strengthening upside conviction and signaling renewed momentum in spot markets [8]