The red numbers on the screen are bouncing like a heartbeat, and the trading hall is buzzing. This familiar frenzy makes me think of many moments in history.
As an analyst who has been active in the crypto space for years, yesterday I saw a scene like that at a gold trading center. Young people with bright eyes dreaming of overnight riches; seasoned investors with furrowed brows, hesitant to speak. The differences in mindset between generations are actually the most authentic mirror of market cycles.
Recently, this wave of market movement has been a bit unusual—gold and crypto assets are rising together. Gold has already increased by over 68% this year, approaching a new all-time high of $4,500 per ounce. Crypto assets like SOL haven't been idle either, achieving astonishing gains in a short period.
But behind the celebration, we need to ask a few questions: Can this momentum continue? How can two fundamentally different assets surge in sync?
**Two forces driving the market**
The surge in gold is driven by three factors. First is the Federal Reserve's actions—by December 2025, the third rate cut will be completed, with the federal funds rate lowered to the 3.5%-3.75% range, while launching measures similar to quantitative easing. Lower interest rates significantly reduce the cost of holding gold, and the expectation of dollar depreciation is also strengthened.
Second, central banks worldwide continue to buy gold. Some countries, due to geopolitical considerations, actively shift their reserve assets from dollars to gold. The scale of central bank gold purchases in 2025 is expected to remain high.
Crypto assets follow a different logic. In the context of the Federal Reserve's liquidity release and a looser interest rate environment, risk assets are actually benefiting. Mainstream coins like SOL have gained market attention, with capital inflows accelerating their gains. Although these are different assets, they are all enjoying the dividends of the same loose monetary cycle.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
21 Likes
Reward
21
7
Repost
Share
Comment
0/400
WinterWarmthCat
· 2025-12-28 00:04
Haha, it's the same old story. When liquidity is pumped in, everything rises. Truly incredible.
Gold and SOL soaring together still feels a bit strange... It seems more like funds are just scrambling around.
The central bank is stockpiling gold, the Federal Reserve is printing money, and retail investors are dreaming. I've seen this script too many times.
Wait, how long can this logic hold? It feels like the wind will change direction at any moment.
The difference in the eyes of young people and seasoned investors is really the most genuine—one is trying to get rich, the other is waiting to get cut.
But to be fair, this liquidity dividend really leaves no choice... The question is, when will it peak?
View OriginalReply0
BearMarketMonk
· 2025-12-27 07:58
Gold and cryptocurrencies are both rising, sounds comfortable but I just don't dare to go all in, always feel something's off
The dollar depreciation really gives all risk assets a stepping stone
The good thing about the rate cut cycle — liquidity flooding causes everything to rise, just worried about bubbles inflating too much
Those bright-eyed newbies still need to suffer some losses to become rational
The central bank's pace of buying gold is much faster than ours, that's true smart money
SOL's recent surge is really a bit fierce, but the fundamentals still seem the same
In a loose cycle, making quick money is easy, but holding steady is the hard part... after experiencing a few cycles, you understand
Gold and coins rising together clearly indicates liquidity-driven growth, and the logical clarity is reassuring
How long can this momentum last? There’s always a peak ahead
View OriginalReply0
0xLuckbox
· 2025-12-26 10:21
Lower interest rates + liquidity infusion, both gold and cryptocurrencies benefit. This is the ultimate tool of easing monetary policy.
View OriginalReply0
UncommonNPC
· 2025-12-25 20:51
Bro, this analysis is pretty interesting. Gold and crypto are both booming. To be honest, it's just the old trick of the Federal Reserve flooding the market again.
SOL has just started, let's wait and see how it plays out.
The rate cut cycle has begun. Those who got in early already did, and latecomers will have to take the loss.
Gold is almost at 4500, and crypto still has room for growth, right?
Is this really different this time, or is it just another cycle of cutting the leeks?
No wonder young people have bright eyes; if it were me, I’d jump in too.
The way the Federal Reserve is playing its hand, it’s making all assets go crazy.
View OriginalReply0
SleepyArbCat
· 2025-12-25 20:49
Wake up, wake up... It's the same old story of interest rate cuts and liquidity injections. The simultaneous rise of gold and SOL does seem a bit suspicious.
Wait, the central bank is buying gold but also shifting towards the dollar... How did this logic reverse?
Gas fees are so high, yet everyone is following SOL. I advise everyone to be rational.
Napping warning, we'll talk again before the close.
The real arbitrage opportunity? It's just an illusion of a loose cycle.
Cross-chain harvesting wave? No, let's wait and see.
View OriginalReply0
GateUser-c799715c
· 2025-12-25 20:43
Honestly, this wave of rate cuts really smells like a storm is coming. Gold and cryptocurrencies are both celebrating wildly, but it feels a bit strange.
What does it mean when two different asset classes surge together? It actually means that the Federal Reserve has turned the tap open, and a flood of liquidity is rushing in. Everything is rising, it's that simple and brutal.
The question is... can this momentum last? History tells us that even the wildest celebrations have their end.
The central bank's move to buy gold is, in our crypto circle, basically a kind of "backstab" against the US dollar. Under geopolitical tensions, assets are turning into safe havens, which is quite interesting.
Those kids in SOL are now so excited their eyes are almost touching the sky, waiting for overnight riches. But the ones who really make money are always the old foxes with furrowed brows.
This market feels a bit like "everything rises." When things feel too comfortable, that's when danger lurks. We still need to stay alert.
View OriginalReply0
BoredStaker
· 2025-12-25 20:28
Liquidity easing is so magical, everything can go up
---
Gold and cryptocurrencies flying together? It shows everyone is running, running for what? Still for the US dollar
---
Brother is right, young people look at the gains, veterans look at the risks, that’s the gap
---
Wait, can two logically different things really synchronize? I feel like someone is hyping it up
---
I believe the central bank is buying gold at the bottom, but can crypto really benefit from it? Just an excuse
---
Another rate cut and QE, indeed money can make the devil push the millstone
---
SOL’s recent surge is truly shocking, but can everyone hold on?
---
The intergenerational gap observation is brilliant, young people dream of getting rich overnight, elders smile silently
---
Red numbers jumping like a heartbeat? That’s probably the heartbeat of a gambler
---
Whenever the Fed loosens monetary policy, it’s hype. When will this logic ever be broken?
The red numbers on the screen are bouncing like a heartbeat, and the trading hall is buzzing. This familiar frenzy makes me think of many moments in history.
As an analyst who has been active in the crypto space for years, yesterday I saw a scene like that at a gold trading center. Young people with bright eyes dreaming of overnight riches; seasoned investors with furrowed brows, hesitant to speak. The differences in mindset between generations are actually the most authentic mirror of market cycles.
Recently, this wave of market movement has been a bit unusual—gold and crypto assets are rising together. Gold has already increased by over 68% this year, approaching a new all-time high of $4,500 per ounce. Crypto assets like SOL haven't been idle either, achieving astonishing gains in a short period.
But behind the celebration, we need to ask a few questions: Can this momentum continue? How can two fundamentally different assets surge in sync?
**Two forces driving the market**
The surge in gold is driven by three factors. First is the Federal Reserve's actions—by December 2025, the third rate cut will be completed, with the federal funds rate lowered to the 3.5%-3.75% range, while launching measures similar to quantitative easing. Lower interest rates significantly reduce the cost of holding gold, and the expectation of dollar depreciation is also strengthened.
Second, central banks worldwide continue to buy gold. Some countries, due to geopolitical considerations, actively shift their reserve assets from dollars to gold. The scale of central bank gold purchases in 2025 is expected to remain high.
Crypto assets follow a different logic. In the context of the Federal Reserve's liquidity release and a looser interest rate environment, risk assets are actually benefiting. Mainstream coins like SOL have gained market attention, with capital inflows accelerating their gains. Although these are different assets, they are all enjoying the dividends of the same loose monetary cycle.