Hedging demand surges! Gold rose 6% in a single week, returning to $2712. How will it affect the BTC market?

Russia and Ukraine recently exchanged missiles, causing geopolitical tensions to heat up, promoting safe-haven buying, driving gold prices back to the $2,700 mark on the 22nd, soaring nearly 6% in a single week, and BTC is also regarded as having a safe-haven function, the same as gold, and is expected to be driven by safe-haven buying. (Synopsis: US congressman recommended: sell Fed gold for 1 million BTC strategic reserves) (Background supplement: Trump won the gold streak for 5 days!) Losing $2600, will the decline in safe-haven demand become a concern for BTC? Since Trump's victory, the dollar has appreciated strongly, and gold prices, which have been rising before the election, have instead begun to weaken, falling to a new two-month low of $2,536 in mid-November, but in recent days Russia-Ukraine tensions have intensified, under safe-haven buying, gold prices have risen sharply, Spot gold prices closed at $2712 on Friday, writing a new high since early November. Gold prices surged 5.7% throughout the week, their biggest weekly gain since March 2023. Spot gold price. Source: investing.com The Russian-Ukrainian conflict, which has been at war for 33 months, is rapidly escalating, and this month Russia recently dropped the threshold of nuclear weapons and launched hypersonic medium-range ballistic missiles at Ukraine after the United States and Britain allowed Ukraine to use its advanced weapons to attack targets in Russia. Russian President Vladimir Putin said on Thursday that Russia tested its self-developed Hazel Tree medium-range ballistic missile, which did not carry a nuclear warhead, hitting a Ukrainian military facility, and warned that there may be more attacks later, and Russia will continue to test new missiles, including in real combat conditions, depending on the degree of threat to its security. Medium-range ballistic missiles have a range of 3,000-5,500 kilometers, which allows them to strike anywhere in Europe or the western United States from Russia, Putin pointed out, the Hazel missile is a completely new research result, its power, especially in large-scale swarm operations against enemy targets, comparable to strategic weapons, there is currently no technology in the world to intercept the missile. Alex Ebkarian, chief operating officer of Allegiance Gold, said that the Russia-Ukraine conflict has heated up and seems to have expanded into a conflict between Russia and the United States. The war is sure to enhance short-term safe-haven appeal, and coupled with the continued shift in Fed policy and the inflation risk posed by Trump's possible trade tariffs, the outlook for gold remains strong, with a knock expected at $2,750 in mid-December. FXStreet analyst Christian Borjon Valencia said that the U.S. Treasury Intrerest Rate fell, gold prices rose to a two-week high, and the geopolitical situation continued to play a role, maintaining gold buying. Escalating geopolitical concerns, including a possible expansion of the Russia-Ukraine conflict, are driving safe-haven demand for gold, potentially paving the way for gold to retest its all-time high of $2,790. BTC will continue to rise driven by safe-haven buying? It is worth noting that BTC is also regarded as having a hedging function, the same as gold, it is expected to be driven by safe-haven buying, but gold is more sensitive to war, gold may first pull a wave, BTC demand rise may need to wait until the market risk expectations slightly ease, funds begin to reallocate to riskier assets with greater return potential. However, George Milling-Stanley, head of gold strategy at State Street Bank, warned on the 23rd that BTC's recent big pump may mislead investors to ignore the stability of gold, he believes that BTC is more like a return-driven investment, while gold provides long-term stability, and he also criticized BTC promoters for using the term "mining" to mislead the market, believing that gold is still a more reliable investment choice: BTC promoters call it mining, It's because they want to make BTC look like gold, maybe they want to reduce some of the aura of gold, gold was $450 20 years ago, now the price is five times what it was then, if you look at five times, then twenty years from now, the price of gold should be more than one hundred thousand dollars. Related reports Gold hit the largest one-day fall in the past half a year, and the hedging market is gone? Note that the Fed announced the Intrerest Rate decision at 3 a.m. Tether made a net profit of $2.5 billion on gold and U.S. bonds Q3! Total assets and equity both hit a record high Gold approached a new high of $2,800, the US presidential election, war hedging: The increase is even greater than the S&P 500, will BTC be next? 〈The demand for hedging has skyrocketed! Gold rose 6% in a single week to return to $2712, how will it affect the BTC market? This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".