Gold surged to a record $3,500 per ounce on growing bets for Fed rate cuts and rising fiscal concerns — a move that rippled through crypto markets as investors rotated capital out of bitcoin and into ether and other assets. While BTC bounced above the $110,000 area, it remains capped under key technical resistance, leaving traders cautious ahead of a busy macro calendar.
Market snapshot
The market picture is one of selective strength. Gold-backed tokens such as PAXG and XAUT briefly tracked the metal’s move before pulling back with the broader metal. Spot bitcoin is trading below the Ichimoku cloud, a commonly watched resistance zone, while on-chain data shows active Bitcoin addresses and transaction fees remain subdued — signs of muted retail engagement.
At the same time, analytics and on-chain trackers signaled institutional and whale activity. A prominent whale address reportedly sold hundreds of BTC in exchange for more than 10,000 ETH across several days, and transfer volumes spiked to $10.8 billion — a pattern analysts say points to repositioning by large entities rather than broad retail buying.
What’s driving flows
Several forces are converging. Macro risk — especially concerns about central-bank independence and crowded sovereign debt markets in Europe — pushed safe-haven capital toward gold. Within crypto, a combination of ETF flows, futures liquidations and options positioning created mixed incentives: BTC futures open interest ticked up, but options markets show a put premium into year-end, suggesting downside hedging. Ether benefitted from rotation, with traders and whales accumulating ETH exposure.
Risk awareness: market signals are mixed and volatility is likely to rise with upcoming macro prints (U.S. payrolls) and token unlocks. Investors should recognize the potential for rapid price swings and consider position sizing and hedging accordingly.
Events and levels to watch
- Key technical: BTC facing resistance at the Ichimoku cloud and near-term options strike levels ($105K puts, $135K calls).
- Token events: Polygon token migration (Sept. 4) and Tellor mainnet upgrade (Sept. 3) could prompt short-term activity.
- Macro calendar: U.S. nonfarm payrolls and other data this week — expect volatility spillover into crypto.
Bottom line: gold’s record run is reshaping risk allocation and helping fuel a short-term rotation into ether and alternative tokens. Traders should watch whale flows, ETF and futures positioning, and scheduled protocol events for clues on the next directional move.
Source: CoinDesk. Read the original coverage for full details.
