Why is Crypto Down Today? Gold Price Smashes $5,600 as the Dollar Slips and Liquidity Floods the System

[Ben Graham]

The gold price gained more market cap in one day than Bitcoin’s entire market cap. I cannot imagine how smug gold bug Peter Schiff is right now.

Ray Dalio, Schiff, they were all right…The USA is collapsing in real time.

Bitcoin BTC $87,965.81 0.72% Bitcoin BTC Price $87,965.81 0.72% /24h Volume in 24h $39.22B Price 7d Learn more and equities have stalled as gold and silver rip higher. Glassnode data shows declining risk appetite in crypto derivatives, while energy and base metals are also catching bids.

(Source: X)

Gold prices briefly tested $5,600 per ounce this week before profit-taking set in, extending what is now one of the most aggressive precious metals runs in modern market history. Spot gold last traded near $5,500, up more than 3% on the session, while silver surged past $119 an ounce, continuing to outperform on both momentum and narrative.

This is not a tidy inflation hedge story anymore. It’s about confidence, liquidity, and a global market searching for something that still feels solid.

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Will Gold Price Pump Until Summer? Extreme Overbought Signals Mean Nothing

(Source: TradingView)

On the daily chart, gold is stretched to levels that would normally invite a sharp blow-off top, but it ain’t happening. The 14-day RSI sits above 90, an extreme reading by any historical standard.

Yet the gold price continues to hold decisively above every major moving average, with the 21-day SMA near $4,730 acting as first dynamic support.

“If you don’t own Gold, you know neither history nor economics” – Ray Dalio

Technically, this is classic melt-up behavior. Overbought conditions matter less when capital flows overwhelm positioning.

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Is There Any Way That Bitcoin Can Come Back?

How will Bitcoin ‘comeback’? Jeez, we don’t know… maybe by virtue of being the soundest money ever conceived, the best available financial instrument, and the greatest and best performing asset of all time!

Bitcoin is still the best decentralized unit of account that cannot be replicated again, and that is engineered to challenge central banking debt-based fiat currencies. It’s backed by energy and social incentives, and that’s better backing than anything out there.

Meanwhile, if you are a crypto holder, gold’s run-up should unironically make you feel so much more bullish about the potential gains of crypto. Wealth is suddenly and desperately trying to save itself with whatever alternatives there are.

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Data Shows the Real Driver: The Weakening Dollar

According to Federal Reserve trade-weighted dollar data and Bloomberg’s DXY index, the US dollar is down nearly 11% year over year. That denominator effect matters more than mine supply or jewelry demand right now.

At the same time, US Treasury auctions have struggled to attract the same depth of demand seen in prior cycles, while central banks continue to add gold at a steady pace. World Gold Council data shows central bank purchases remain near multi-decade highs, reinforcing the bid under the market.

Ray Dalio just warned us…

"The monetary system is ending."

Banks aren't buying Gold for profit. They're buying to escape the Dollar. The great reset is here.

There is no ceiling for Gold because there is no floor for fiat currency.

Most people have no idea what's coming. pic.twitter.com/A2GjOexSf7

— Bark (@barkmeta) January 28, 2026

 

From where I’m sitting, this feels less like rational repricing and more like capital looking for shelter wherever it can still fit.

Gold remains a buy-on-dips trade, but traders should respect the volatility and expect a pullback in the Spring, according to gold investors like Michael Oliver. When liquidity drives price, reversals can be just as fast as the ascent.

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Key Takeaways

• The gold price gained more market cap in one day than Bitcoin’s entire market cap. I cannot imagine how smug gold bug Peter Schiff is.
• Traders should respect the volatility and expect a pullback in the Spring, according to gold investors like Michael Oliver.

The post Why is Crypto Down Today? Gold Price Smashes $5,600 as the Dollar Slips and Liquidity Floods the System appeared first on 99Bitcoins.