Gold price has been falling for 5 consecutive days since Trump's victory! Will the decline in safe-haven demand become a concern for Bitcoin as it falls below $2600?

After Trump's victory, the price of gold continued to fall. Following yesterday's fall below the $2600 mark, it further fell to $2554 today, marking a continuous five-day decline. At the same time, the correlation between BTC and gold has dropped to its lowest point in 11 months. Analysts pointed out that capital is shifting from traditional safe havens like gold to cryptocurrency. Following Trump's clear victory, the U.S. dollar index continued to rise, while the price of gold, which had repeatedly hit new highs before the election, kept falling. After breaking below the $2600 mark on Wednesday, the price of spot gold continued to fall today, currently at $2554, down 0.7% for the day, and hitting a new low since September 19. The continuous fall in the price of gold is attributed to the U.S. October Consumer Price Index (CPI) not exceeding market expectations, resulting in a stronger dollar and higher interest rates on government bonds, thereby suppressing gold prices. Zain Vawda, a market analyst at OANDA MarketPulse, stated that while the CPI has increased as expected, its impact on gold prices is mixed. The market has raised bets on a possible one-notch rate cut in December. Zain Vawda estimates that the price of gold may have a slight rebound to $2650 in the short term, but may fall again afterwards. Jim Wyckoff, a senior analyst at Kitco.com, believes that the next target price for long positions in gold is a breakout above $2700, while the short-term target for shorts is to push the gold price to the $2500 support level. Economies.com, a well-known financial information website, analyzed that the price of gold has clearly fallen below the major bullish trend line and closed below it, signaling the end of the bullish scenario. Gold prices may face further declines in the near future, with a target of testing $2513.10, which is a 23.6% Fibonacci retracement from $1616.60 to $2790.07. Comparatively, as the price of gold continues to fall, BTC has surged in the past week. Vetle Lunde, managing director of K33 Research, pointed out that the correlation between BTC and gold has reached its lowest point in 11 months after the U.S. presidential election, reinforcing the view that digital assets are forging their own narrative in times of economic uncertainty. Analysts at QCP Capital indicated that with digital gold gaining traction, this trend seems to be increasingly structural. Capital is shifting from traditional safe havens like gold to cryptocurrency. They also noted that BTC's market capitalization recently reached $1.73 trillion, surpassing the market capitalization of silver, but still far behind the $17.5 trillion gold market. However, even a small reallocation, such as a mere 1% of funds shifting from gold to BTC, could push the price of BTC to nearly $97,000. However, it is worth noting that BTC has recently shown signs of a possible pullback. Investors should not only follow the performance of the U.S. stock market, but also pay attention to the impact of the fading election market. As BTC's trend becomes more volatile, investors should remain cautious and keep track of the impact of global economic dynamics on digital assets at all times.