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Gold Volatility Beats Bitcoin’s Risk Profile

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Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee and brace yourself: markets are moving in ways few expected. One asset is swinging wildly, defying norms, while the other struggles to catch up. Traders and investors are watching closely as volatility reshapes familiar narratives, signaling that nothing is quite as it seems.

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Crypto News of the Day: Gold’s Volatility Surges Past Bitcoin Amid Historic Market Swings

Gold has overtaken Bitcoin amid market turbulence. Its recent price swings surpass even Bitcoin’s, highlighting a rare inversion in risk dynamics that few investors expected.

Data shows the 30-day volatility in gold surged to a new peak of 48.68, and stood at 41.04 as of this writing. Notably, this level was not tested since the 2008 financial crisis.

In comparison, Bitcoin’s volatility currently hovers around 39%, despite its reputation as a highly speculative asset.

Bitcoin Volatility Index. Source: newhedge

The surge in gold volatility follows its sharpest plunge in more than a decade, including a single-session drop of nearly 10% from a peak of $5,600 to roughly $4,400 per ounce in Asian trading.

Since Bitcoin’s creation 17 years ago, gold has been more volatile only twice. The most recent was in May 2019 during a flare-up in trade tensions sparked by tariff threats from US President Donald Trump.

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The wild swings in gold come amid broader macroeconomic uncertainty. As indicated in a recent US Crypto News publication, renewed fears of geopolitical instability, currency debasement, and questions about the Federal Reserve’s independence drove investors to pile into precious metals.

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Gold Rebounds $6 Trillion in Two Days, Leaving Bitcoin Behind

The recovery in gold has been equally dramatic, with XAU prices surging back above $5,000/oz, up 17% in just 48 hours.

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During the same period, gold added $4.74 trillion to its market capitalization, while silver gained $1 trillion. This brings the total growth in the precious metals market cap to nearly $6 trillion in two days.

“That’s over 4× Bitcoin’s market cap,” stated analyst Crypto Rover.

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The rebound reflects strong accumulation by institutional and high-net-worth investors, with consistent buying on every dip speaking volumes about who’s accumulating the precious metal, regardless of the noise.

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“Volatility shouldn’t surprise anyone here—it’s rare for an asset to absorb a hit like last week’s and then move straight back up without a few bumps. Gold remains severely under-owned, and this move has real legs as part of a much larger cycle,” said Otavio in a post.

Even amid volatility, gold has maintained its status as a safe-haven asset, up roughly 66% year-on-year, while Bitcoin remains down more than 20% over the same period.

The contrast mirrors how, in times of macroeconomic stress, traditional precious metals continue to command a premium in investor portfolios, outpacing even high-profile digital assets.

As geopolitical and monetary pressures persist, gold’s newfound volatility is likely to remain in focus, offering both risk and opportunity for traders seeking refuge from broader market swings.

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Chart of the Day

Gold Volatility Index. Source: TradingView

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Here’s a summary of more US crypto news to follow today:

Crypto Equities Pre-Market Overview

Company Close As of February 3 Pre-Market Overview
Strategy (MSTR) $133.26 $132.55 (-0.53%)
Coinbase (COIN) $179.66 $178.89 (-0.43%)
Galaxy Digital Holdings (GLXY) $21.98 $22.11 (+0.59%)
MARA Holdings (MARA) $9.05 $8.99 (-0.66%)
Riot Platforms (RIOT) $15.34 $15.32 (-0.13%)
Core Scientific (CORZ) $17.74 $17.65 (-0.51%)
Crypto equities market open race: Google Finance

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