## Crypto Under Pressure: Why Gold is Replacing the Reserve Currency While Stocks Celebrate

The cryptocurrency markets showed weakness on Wednesday during the Asia-Pacific trading session, while traditional assets sent mixed signals. Gold broke through the $4,500 per ounce mark for the first time, setting a new record driven by safe-haven demand amid geopolitical tensions and speculation about interest rate cuts. The S&P 500 closed Tuesday at record highs, benefiting from a positive Q3 GDP surprise with an annualized growth of 4.3% – the strongest pace in two years.

### Regulatory Uncertainty Dampens Market Sentiment

A key driver of the current market uncertainty is the lack of clarity regarding the future leadership of the Federal Reserve. The Trump administration remains vague about the nomination of the next Fed Chair, only signaling a preference for a supporter of interest rate cuts. This uncertainty affects the entire asset class landscape and amplifies flight-to-safety movements into assets like gold.

Adding to this is the geopolitical dimension: The Trump administration is increasing pressure on Venezuelan oil flows, which amplifies risk hedging across all markets. At the same time, the delay of new tariffs on Chinese semiconductor imports until mid-2027 was announced, which suggests more leverage rather than immediate escalation.

### Crypto Bear Market Signals: Bitcoin and Co. Under Pressure

The crypto sector is characterized by marked weakness. **Bitcoin** is currently trading at **$90.58K with a gain of 0.23%** – a marginal recovery that is now under pressure. Market participants point to a critical supply zone between $94,000 and $120,000, accumulated by institutional buyers. This configuration creates an imbalanced market structure, where recovery attempts repeatedly fail due to selling pressure – a pattern reminiscent of the early phase of the 2022 bear run.

**Ethereum** fell by **-0.89% to $3.10K**, while **XRP** managed a slight increase of **+0.14% to $2.10**. The overall crypto market capitalization was weighed down by this weakness.

### Asian Markets Show Resilience

The regional MSCI index for the Asia-Pacific region continued its winning streak, rising about 0.2% at the open. Japan and South Korea benefited from the global risk appetite dynamics, while Australian stocks declined slightly in a shortened session. The Indian Reserve Bank announced liquidity measures to ease tense conditions – a signal of looser conditions in the Asian region.

### The Core Message: Structural Shifts Overall

The contrast between strong US stocks and falling cryptos reflects deeper structural shifts. While traditional assets benefit from real economic data and declining yield expectations, the crypto market struggles with technical resistance and uncertainty over political frameworks. Gold remains the winner of this transitional phase – not through speculation, but as a true safe haven amid global risks.