Cryptocurrency analyst Joao Wedson shared an important market assessment of the relationship between gold and Bitcoin. According to Wedson, the excessive optimism seen in the gold market at the beginning of the year was a classic signal of a "buying spree," and these expectations quickly came true.

Wedson noted that gold experienced a sharp increase in volatility in early January, approaching its all-time high, followed by a correction. According to the analyst, although gold tested its all-time high, it failed to reach new peaks and has recently begun to decline sharply again. This is believed to be the beginning of a long consolidation process that could last several months.

The analyst argued that this scenario represents an analysis based on data and market experience, not a forecast.

Bitcoin exhibits a different dynamic. According to Wedson, Bitcoin typically reacts negatively in the final stages of gold's decline. However, these declines occur much faster and more sharply than gold; sharp corrections can occur within hours or days.

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However, it is argued that the truly critical transformation will begin as the gold distribution process nears completion. Wedson expects market liquidity to gradually shift toward riskier assets at this stage, particularly Bitcoin. However, he notes that this transition will not be sudden, but rather a process that could take several months.

According to the analyst, this liquidity rotation will likely become more pronounced by the end of 2026. Wedson stated that it will continue to monitor whether this scenario plays out in the coming period.

*This is not investment advice.

Taken from the source: https://cryptonews.net/ru/news/bitcoin/32588140/

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