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Asset rotation: while Bitcoin and Ethereum advance, precious metals suffer massive liquidations
The cryptocurrency markets and traditional markets are experiencing a notable capital rotation movement. Bitcoin is trading around $92.27K with a 1.85% increase in the last 24 hours, while Ethereum is positioned at $3.14K with a 0.95% increase in the same period. Meanwhile, assets such as platinum, palladium, and silver are recording significant declines.
According to analysis shared by industry experts like Jin, this movement responds to a strategic rebalancing in investment portfolios. Precious metals had reached short-term highs driven by speculative overbought conditions, which generated profit-taking pressure among traders.
The shift in investment strategies
The migration of funds from overheated positions in metals to digital assets reflects a search for new opportunities. Jin and other analysts point out that this dynamic responds to the market re-evaluation of which assets offer better prospects in the short and medium term.
This rotation suggests that investors are recognizing the bullish potential of Bitcoin and Ethereum compared to precious metals, which face downward pressure after their previous gains. The movement of capital into cryptocurrencies confirms a change in market sentiment towards assets considered relatively undervalued relative to their fundamentals.