As a traditional safe-haven asset, the price movements of gold often reflect investors' risk appetite. When gold prices rise, it usually indicates a weak market sentiment and increased demand for safe-haven assets, which can put pressure on cryptocurrencies. Conversely, the opposite is also true.

Specifically, the correlation between gold and digital assets like Bitcoin is not constant. Under high inflation expectations, both may rise simultaneously because they are both viewed as inflation hedging tools. However, during a central bank interest rate hike cycle, the attractiveness of gold increases while the crypto market may face pressure.

For traders, closely monitoring gold price trends can help judge shifts in market risk appetite. When gold breaks through key levels, it often signals a turning point for the crypto market. This logic is quite useful to consider in practical operations.