Market Analysis for January 26

Today, gold made history by reaching $5000 per ounce. It’s not just inflation driving this; essentially, the global rules have been thrown into disarray. The US dollar is losing its value, and the world is becoming unstable. The rising gold price is essentially pricing in these issues!
Why can it rise so aggressively?
There are three core reasons, all working together.
First, the US debt hole can no longer be filled. This is fundamental. The US owes $36 trillion, and just paying interest costs over $1 trillion annually—more than military spending. The country’s earnings are not enough to cover interest, so it can only print money to borrow more to pay off old debt—an obvious Ponzi scheme. The world has seen through this, and many are rushing to sell US bonds and buy gold, or else the dollar in their hands will become increasingly worthless.
Second, everywhere you look, there are signs of conflict, and the risks are enormous. The US is eyeing Arctic resources in Greenland to seize, Iran could strike at any time—either a major power vying for territory or chaos in the Middle East’s oil choke points. If a real conflict breaks out, paper money will be worthless, while gold remains a reliable hard currency that doesn’t need backing from anyone.
Third, central banks around the world are selling US bonds to buy gold. In other words, they no longer trust the dollar. For three consecutive years, they’ve been buying over 1000 tons of gold annually, with China and Middle Eastern oil-producing countries leading the way. The US always uses the dollar as a weapon for sanctions—freezing assets—making the dollar no longer risk-free. Countries are stockpiling gold to prepare for the possible collapse of the dollar system, exchanging for hard assets in advance.
Ultimately, the crazy rise in gold prices reflects everyone’s realization that US debt is unsustainable, the world is unstable, and the dollar can’t be trusted. Gold is now the most tangible sense of security.
As for $BTC , it has been relatively stagnant, trading sideways with downward fluctuations. ETF outflows are significant, indicating that funds are being withdrawn from the market and flowing into precious metals, US stocks, and A-shares. Currently, it’s a stock-based game—once the gold rally ends, the crypto market will follow. Despite the changes, there are no clear entry points right now. It’s not the time to trade actively, but a direction will emerge soon. Watch more, act less!