#大户持仓动态 Why is this wave of gold market so fierce?

Some people might not have noticed, but by 2025, gold has already risen over 50%, which is not a small fluctuation. An interesting phenomenon is that whenever gold surges, the crypto market also tends to see new investment enthusiasm— the logic behind both is actually connected.

**Excess liquidity is the primary driver**

Since September, the Federal Reserve has been cutting interest rates all the way, and now it has done so three times, with room to cut further in 2026 (expected to cut about 100 basis points). What does this mean? The cost of holding gold is directly decreasing. When U.S. bond yields were high before, putting money into bonds to earn interest was more profitable than hoarding gold. Now, that’s no longer the case. The dollar is also depreciating, and holding dollars is actually shrinking in value. This creates a closed loop: rate cuts → dollar weakens → gold becomes more attractive.

From another perspective, global central banks are also aggressively buying gold. Last year's Q3 saw a net purchase of 220 tons by central banks worldwide, and in October alone, they bought 53 tons, a 36% month-on-month increase. The People's Bank of China has been increasing holdings for 11 consecutive months, reaching 2,303 tons by September. Why are central banks buying? Simply put, it’s about "de-dollarization"—using gold, a non-sovereign asset, to hedge currency risks. This is one of the oldest and most effective hedging mechanisms.

**Safe-haven instincts in turbulent times**

Looking at the current international situation makes it clear. The Russia-Ukraine conflict is ongoing, tensions in the Middle East are escalating, and combined with the U.S. debt crisis and credit rating downgrades, global investors’ anxiety index is soaring. At this moment, gold becomes the safest choice— the ancient saying "buy gold in turbulent times" remains valid in 2025. Capital floods in seeking safe havens, and this demand for safe-haven assets is real and substantial.

**The investment landscape has fundamentally changed**

Institutional investors’ attitude towards gold has undergone a fundamental shift. Previously, gold was mainly seen as a "hedging tool," but now it is gradually evolving into a "core asset allocation"—a mental upgrade. Data also confirms this: in Q3, gold ETF inflows reached a record high, with investment demand hitting 537 tons, a 47% year-over-year increase. Physical gold consumption in Asia remains resilient, and the market supply-demand gap is widening, further pushing up prices.

**Implications for the crypto market**

This wave of gold market performance also reflects a global reallocation of funds. When dollar liquidity is abundant and geopolitical risks intensify, investors tend to focus on multiple safe-haven assets—gold, Bitcoin($BTC), and other non-sovereign assets all benefit. To some extent, the environment of rising gold prices often coincides with increased institutional attention on cryptocurrencies like $BTC and $ETH. Central bank gold purchases, Federal Reserve easing, geopolitical turmoil—these three forces combined open up new long-term asset allocation opportunities.

**The conclusion is simple**

Gold’s rise is not a random event; it reflects adjustments in the global monetary system, increasing geopolitical risks, and evolving investment philosophies. Short-term fluctuations may occur, but the overall trend is established—this is an opportunity for those looking to position for the long term.