Gold and silver have gone crazy! Aside from 'slapping thighs', how can a newcomer in the cryptocurrency world catch this wave of immense wealth?
Recently, when you open the news, haven't you been bombarded with 'gold prices reaching historic highs' and 'silver skyrocketing'?
You might be watching the elders at home smiling happily, or seeing the gold jewelry resellers in your social media feed going crazy, while thinking: 'What does this have to do with my cryptocurrency trading? Did I miss out perfectly?'
Brothers, don't panic! If you understand a bit of macroeconomics, you will find that the surge in gold is actually the strongest 'starting gun' for this round of bull market in the cryptocurrency world!
In this long article today, we won’t talk about complex candlestick patterns or obscure financial terms; let's use straightforward crypto language to explain the logic behind it, future trends, and how we should operate all at once.
One, Why did the 'old relic' gold suddenly become 'meme coin'?
First, we need to understand why these two ancient relics, gold and silver, have recently skyrocketed like meme coins.
It's not that everyone suddenly loves gold jewelry; the core reason is simple: people no longer trust fiat currency (paper money).
In crypto terms, central banks around the world are engaged in 'unlimited issuance.'
Federal Reserve (Fed): Interest rates can't drop; debt is growing like a snowball (trillions upon trillions being printed).
Geopolitics: Wars are breaking out everywhere; when the cannon fires, gold is worth a fortune.
De-dollarization: This refers to the so-called 'large holders withdrawing funds' movement; central banks (especially major Eastern countries) are selling US bonds and crazily buying and hoarding gold.
Key Point: When gold hits new highs, it essentially means that money in your hands (fiat currency) is losing value. This is global capital seeking a 'safe haven.'
Two, Gold and Bitcoin: Fraternal Brothers
For cryptocurrency newbies, you must remember this most important benchmark relationship:
Gold (Gold) = Bitcoin (BTC) in the physical world
Silver (Silver) = Ethereum (ETH) in the physical world
Why do I say this?
1. Gold vs BTC (Value Storage)
Gold is the consensus of the previous generation; Bitcoin is the consensus of the digital age. Their logic is exactly the same: limited supply, inflation resistance, and decentralization (no one can just print gold).
When gold starts to move, it indicates that 'big money' is beginning to panic. This money is generally slow to react (Smart Money tends to move slowly); it will first flow into the most traditional safe-haven asset (gold). Once gold rises to a high level, overflow funds will seek higher returns and more elastic assets — that is Bitcoin.
2. Silver vs ETH (Industrial/Application)
Silver not only has financial properties but also strong industrial attributes (used to make solar panels and electronic components). Isn’t that similar to Ethereum? Ethereum is not just a coin; it's the 'fuel' (Gas) for the entire blockchain.
When the economy recovers and industrial demand increases, silver will skyrocket, and typically, silver's volatility is greater than gold's (just like altcoins are more volatile than BTC).
Three, History Doesn't Lie: In-depth Case Review
Don't just listen to my hype; let’s look at historical data. Every major bull market for gold is often a prelude to a super bull market for Bitcoin.
Case One: 2020 'Easy Money' Bull
Stage One (March-August 2020): The global pandemic broke out, and central banks were printing money like crazy. Gold started first, skyrocketing from $1450 to $2075 in just a few months, reaching a historical high.
Stage Two (October 2020 - 2021): At this time, Bitcoin was still hovering around $10,000. But just as gold topped off and consolidated, Bitcoin took the baton and soared from $10,000 to $60,000!
Conclusion: Gold gets the first bite, and Bitcoin subsequently drinks from a larger bowl.
Case Two: 2024-2025 (Current Cycle)
Current Situation: Gold prices have broken historical records multiple times during this cycle (breaking $2700 or even higher).
Crypto Circle Reaction: If Bitcoin is still fluctuating or correcting at this time, this is definitely not a bear market; this is the main force giving you the last 'boarding opportunity'!
The logical chain is as follows:
Macroeconomic environment worsens -> Gold rises first (risk-off) -> Market confirms excessive money printing -> Funds overflow -> Bitcoin skyrockets (inflation resistance + high elasticity).
Four, Traffic Password: How will the future script unfold?
Based on the backdrop of 'new highs in both gold and silver,' the script for the crypto circle in the next 6-12 months is likely to be as follows:
Stage One: Bloodsucking Solo Dance (BTC Season)
As gold prices fluctuate at high levels, traditional financial institutions (ETFs, family offices) will start allocating Bitcoin as 'digital gold.' At this point, Bitcoin will rise independently, draining market liquidity, while altcoins may still fall.
Newbie Strategy: Hold onto Bitcoin (BTC), don't switch positions randomly.
Stage Two: Overflow Effect (ETH & Layer1)
When silver starts to catch up, it means that market risk appetite is increasing. Funds will flow from BTC to leading public chains like ETH and SOL. It's just like silver chasing after gold.
Stage Three: Chaotic Revelry (Altcoin Season)
When both gold and silver can’t rise anymore, and people have more money than they know what to do with, they will rush into the smallest market cap meme coins. That’s when the real frenzy begins.
Five, A 'Foolproof' Operation Guide for Cryptocurrency Newbies
Seeing gold rise, if you now go to the gold store to buy gold bars, you're likely to be catching the top (buying at the peak). As people in the crypto circle, our advantage lies in the time difference in cognition.
Here are three pieces of advice for newbies:
1. Focus on the 'Gold-Oil Ratio' and 'Gold Coin Ratio'
Don't overthink it; just remember this: as long as gold keeps rising, the overall trend for Bitcoin won't be bad. If gold hits new highs every day while Bitcoin drops, that’s gold telling you: Bitcoin is undervalued, hurry and buy!
2. Do not sell Bitcoin to buy gold
This is the dumbest operation. Although gold is stable, its price increase has a ceiling (30% increase in a year is the max). Bitcoin, as the 'high Beta version of gold,' typically increases by 5-10 times more than gold once it starts to move. We want to get rich, not preserve value.
3. Silver Riot = Knockoff Season Signal
If you notice that silver (Silver) suddenly spikes 5%-10% in a single day, it usually indicates that market speculative sentiment has been ignited. At this point, you can gradually buy some quality altcoins (like ETH, SOL, or AI sectors) with your stablecoins (USDT).
⭐️ Summary: A word for the newbies
Gold hitting new highs is telling the world: 'Paper money is worthless now.'
In this world, there is no 'hard currency' more scarce, portable, and explosive than Bitcoin.
Now is not the time to be envious of gold; instead, it's time to quietly ambush in the crypto circle while everyone else is lined up at the gold store.
(This article is for reference only and does not constitute investment advice. The crypto market is risky; invest cautiously.)
