While gold prices soar amid the Middle East crisis…"Bitcoin is coupled with risk assets"

With the ongoing conflict in the Middle East, gold prices are nearing all-time highs, while Bitcoin (BTC) is still considered a risky asset, raising concerns about a possible drop.

According to Cointelegraph on the 16th (local time), gold prices that had risen about 30% earlier this year due to tariff issues surged even more following the military clashes in the Middle East. Meanwhile, there is lingering doubt in the market over further increases in Bitcoin's price.

The article states, "Gold prices move in response to investors’ preference for inflation hedges or safe-haven assets," adding, "If inflation concerns are detected when upcoming economic indicators are released, gold could soar to new record highs."

Market experts further predicted that, due to risks from the Middle East, oil and gold will rise in the short term while the stock market and Bitcoin will fall. Henrik Andersen, a crypto analyst from Apollo, said, "Oil and gold will move in the opposite direction to the stock market and Bitcoin." Nick Ruck, Head of LVRG Research, also analyzed, "The 'digital gold' narrative around Bitcoin is gradually weakening," and added, "Traders are focusing more on short-term volatility and liquidity, so Bitcoin is moving more closely with risk assets rather than acting as a safe-haven."

Meanwhile, the market is keeping a close watch on the outcome of this week’s Fed policy meeting. Eugene Cheung, Chief Commercial Officer of OSL, predicted, "If investors start looking to Bitcoin as an alternative store of value and this week's Fed meeting meets market expectations, Bitcoin could regain upward momentum in the coming weeks."