Retail and Institutional enthusiasm reached a massive peak when gold reached an all-time high of $5,589 per ounce in late January. However, crypto analyst Joao Wedson flagged the move at the time as a buy climax consisting of a sharp, high-volume price spike caused by peak euphoria.
Bitcoin does not lead during gold’s distribution phase, but it reacts to it and reacts violently. The speed of Bitcoin’s price movements means that the final stages of gold’s current decline, which may not yet be complete, carry outsized risk for the leading cryptocurrency.
According to the analyst, the real opportunity for a Bitcoin rally begins only when gold’s distribution phase is close to ending and capital starts rotating back into risk assets like Bitcoin. However, that process would not be a quick handoff. In his view, the transition may take months, and the full effect might not become obvious until late 2026.
Featured image from Unsplash, chart from TradingView
