Macro boom: How crypto traders can ride the gold & stock rally

Finding it hard to fight the FOMO and ignore the cheers for all-time highs? The global financial markets are undergoing a transformative macro boom, driven by bullish stock market rallies, historic surges in gold prices and heightened volatility across asset classes. As geopolitical tensions, inflationary pressures and monetary policy shifts reshape the investment landscape, traders are being presented with unparalleled opportunities to diversify and capitalize on cross-market dynamics. 

From gold’s ascent past $3,000 per ounce to the S&P 500 and Nasdaq-100 indices reaching new highs, this interconnected environment is offering crypto traders the chance to leverage strategic fund rotation across gold, forex, stocks and cryptocurrencies. 

In this article, we’ll explore these drivers and provide actionable insights into navigating this unprecedented macroeconomic wave.

Key Takeaways:

• From surging gold prices to bullish equity markets, the current macro boom is being driven by a mix of geopolitical tensions, monetary policy shifts and economic recovery efforts.

• Gold and cryptocurrencies (such as Bitcoin) are often pitted against each other, due to their roles as alternative assets. In actuality, they serve distinct purposes in portfolios. Rather than competing directly, gold and Bitcoin can complement each other within a diversified portfolio.

• For crypto traders looking to explore traditional markets, such as gold and forex, Bybit’s Gold&FX offering makes the transition seamless. With zero-fee index trading, real-time pricing and access to major macro-driven assets, Gold&FX gives traders the flexibility to rotate capital across asset classes from a single platform.

What’s fueling the current macro boom?

The current macro boom isn’t a random phenomenon. Rather, it’s the result of interconnected global events reshaping the financial landscape. From surging gold prices to bullish equity markets, developments are being driven by a mix of geopolitical tensions, monetary policy shifts and economic recovery efforts. Understanding these drivers is essential for traders aiming to position themselves strategically in the face of upcoming macroeconomic catalysts and heightened volatility.

Gold’s record surge

Source: https://www.tradingview.com/chart/?symbol=TVC%3AGOLD

Gold has reached historic highs, surpassing $3,000 per ounce for the first time in history. This unprecedented milestone is underpinned by several key factors.

• Geopolitical tensions: Persistent conflicts like the Russia-Ukraine war and escalating US-China trade disputes have raised the bar when it comes to global uncertainty. As such, long-term investors are flocking to gold as a safe-haven asset to hedge against potential economic fallout. For instance, demand for gold has surged during recent escalations in Asia and Europe, reflecting its enduring appeal during times of crisis.

• Inflationary pressures: With inflation remaining stubbornly above target in many economies, gold has become a preferred hedge against currency devaluation. Central banks and institutional investors are increasingly turning to gold to protect their reserves. According to various analysts, sustained inflationary concerns could push gold prices even higher, with forecasts now reaching upward of $3,500 per ounce by early 2027.

• Central bank stockpiling: According to the World Gold Council, central banks have significantly increased their gold reserves in recent years as part of a broader strategy to diversify away from the US dollar. In 2010, central banks accounted for just 1.8% of total gold demand. In 2024, this figure comparatively rose to 21%. In fact, large Asian central banks alone are purchasing up to 70 tons of gold monthly. This ultimately reinforces gold’s role as a cornerstone of global financial stability.

These factors collectively underscore why gold remains an indispensable asset during periods of economic and geopolitical uncertainty.

Stock market rally

Source: https://www.tradingview.com/chart/?symbol=TVC%3ASPX

Source: https://www.tradingview.com/chart/?symbol=NASDAQ%3ANDX

Equity markets also experienced a robust rally in 2024, with indices like the S&P 500 and Nasdaq-100 posting strong gains. This bullish momentum reflects renewed optimism in global markets, despite lingering uncertainties.

• Dovish Federal Reserve policies: The Federal Reserve’s accommodative stance has been a major catalyst for equity market growth. By slowly cutting interest rates and maintaining lower bond yields, the Fed has encouraged risk-taking among investors. This dovish approach has provided much-needed liquidity and boosted confidence across asset classes. Recently, the Fed has even slowed its balance sheet runoff process. This move effectively injects further liquidity into the market, as the reductions in US Treasury security redemptions will increase market liquidity and potentially inflate asset prices. As such, market participants should closely monitor these changes for their significant impact on financial conditions.

• Economic recovery optimism: Despite geopolitical challenges and uneven growth across regions, markets are pricing in expectations of economic recovery fueled by technological innovation and fiscal stimulus. For example, AI-related advancements have driven significant gains in tech-heavy indices like the Nasdaq-100 as companies such as NVIDIA continue to project exponential long-term growth when it comes to demand for datacenter services.

• Earnings growth: Strong corporate earnings reports from major players like Apple and Microsoft have further buoyed investor sentiment. Nearly half of the companies in the S&P 500 are outperforming the index itself. This is a notable turnaround as compared to previous years, when market leadership was concentrated among a few technology giants.

While the above factors have supported equity markets so far, experts caution that volatility remains a key risk, due to potential corrections driven by geopolitical shocks and/or shifts in monetary policy.

Economic uncertainty

Beneath the surface of this macro boom lies significant economic uncertainty that continues to shape market dynamics.

• Geopolitical risks and trade wars: Ongoing conflicts and trade disruptions are creating unpredictable conditions for global supply chains and commodity prices. For instance, new tariffs imposed by the current US administration have the potential to add layers of complexity to international trade relations, given that they’ll increase overall costs for trade and supply chains.

• Volatility in forex markets: Fluctuations in currency values — exacerbated by diverging monetary policies among major economies — are impacting capital flows globally. For example, the US dollar's strength against emerging market currencies has created headwinds for export-driven economies while benefiting dollar-denominated assets.

• Commodity price swings: Beyond gold, other commodities, such as oil and agricultural products, are experiencing price volatility due to supply chain disruptions and climate-related risks.

While these uncertainties pose challenges for policymakers and businesses alike, they also create opportunities for traders to capitalize on price movements across asset classes.For traders willing to navigate these complexities strategically, this environment offers significant opportunities for gains while underscoring the importance of diversification and risk management across markets.

Gold vs. crypto: complement or competition?

Is there a world in which both physical gold and “digital gold” can coexist and thrive? 

Gold and cryptocurrencies like Bitcoin are often pitted against each other due to their roles as alternative assets. In actuality, they serve distinct purposes in portfolios. 

Source: https://newhedge.io/bitcoin/gold-correlation

Gold: The timeless safe haven

With its centuries-long history, gold is widely regarded as the ultimate safe haven during economic uncertainty. Its stability and low correlation with equities make it an effective hedge against inflation, geopolitical turmoil and systemic market shocks. For example, gold prices surged by over 25% during the 2008 financial crisis and recently climbed past $3,000 per ounce amid global economic concerns in 2025.

Gold-backed crypto: Bridging the gap

While traditional gold remains a reliable hedge, traders who want the same stability with more flexibility can turn to gold-backed tokens like PAX Gold (PAXG) and Tether Gold (XAUt). These assets are pegged to the price of physical gold and backed by real reserves, allowing holders to gain exposure to gold’s value while transacting on-chain. With the ability to trade 24/7, fractionalize ownership and move seamlessly across wallets and exchanges, gold-backed tokens are becoming a popular option for crypto-native investors looking to diversify without leaving the blockchain ecosystem.

Bitcoin: The high-growth disruptor

On the other hand, Bitcoin emerged after the Great Financial Crisis as a decentralized digital asset designed to bypass traditional financial systems. While often dubbed digital gold (due to its fixed supply of 21 million coins and potential as an inflation hedge), Bitcoin’s inherently high volatility makes it more attractive to risk-tolerant traders seeking explosive speculative growth. Despite these differences, both assets have seen increased institutional adoption, with spot ETFs recently enabling easier access for investors.

Two sides of the same portfolio strategy

Rather than competing directly, gold and Bitcoin can indeed complement each other within a diversified portfolio. Gold provides stability during crises, acting as a defensive asset that cushions portfolios against drawdowns. Bitcoin offers growth potential fueled by technological innovation and adoption cycles, making it suitable for traders seeking higher returns.

Interestingly, recent market trends suggest convergence between the two: Bitcoin’s resilience alongside gold during periods of volatility indicates that both may now fulfill similar roles as hedges against macroeconomic risks. However, their divergence in risk profiles underscores the importance of balancing these assets (based on individual investment goals and risk tolerance). 

This divergence results from the contrast between gold’s predictable regulatory framework and Bitcoin’s susceptibility to liquidity shifts and regulatory changes. Together, the two assets offer unique strengths that cater to different needs in today’s interconnected financial landscape.

Why stocks matter to crypto traders

Before diving into the intricacies of stocks and crypto, it’s essential first to consider the landmark announcement represented by spot crypto ETFs.

The rise of spot crypto ETFs

The increasing correlation between the stock and crypto markets is becoming undeniable, particularly for seasoned crypto traders observing the rise of spot crypto exchange-traded funds (ETFs) within traditional finance (TradFi). This regulatory milestone provides institutions with a structured avenue to gain exposure to digital assets, and signals a significant step toward mainstream acceptance of cryptocurrencies as legitimate financial instruments.

Notably, the rising popularity of Bitcoin Spot ETFs and Ethereum Spot ETFs exemplifies this progress, as they effectively bridge the gap between traditional and decentralized finance (DeFi). The substantial inflows of funds into these ETFs underscore the deepening relationship between the stock and crypto markets, offering both valuable insights and opportunities for traders who must now navigate this increasingly intertwined landscape.

What’s the link between crypto and stocks?

Source: https://newhedge.io/bitcoin/us-equities-correlation

The correlation between stocks and cryptocurrencies has grown significantly, and is primarily driven by shared investor sentiment and overlapping market dynamics. Large-cap coins like Bitcoin often move in tandem with traditional markets during risk-on periods as traders seek high-yield opportunities across diversified asset classes. This connection is particularly pronounced in the tech sector, where Bitcoin’s performance aligns with tech-heavy indices like the Nasdaq-100, reflecting BTC’s adoption by tech-savvy investors.

Additionally, stock market events such as positive earnings reports from companies like Tesla or Amazon can bolster confidence across both equities and crypto markets as traders take on a more risk-on approach. Similarly, macroeconomic data releases, such as Federal Reserve rate decisions or unemployment figures, can also trigger volatility in stocks and crypto alike, creating lucrative opportunities for traders to capitalize on price fluctuations across the two interconnected markets.

3 reasons why rotating capital between markets is an essential cross-market strategy for crypto traders

1. Tap into global liquidity across asset classes

With the introduction of spot crypto ETFs, stock market indices trading at close to all-time highs and a renewed interest in gold as a portfolio hedge, there’s never been greater liquidity across various financial markets. As such, rotating capital between markets is a valid cross-market strategy for crypto traders seeking to maximize returns and mitigate risks in today’s interconnected financial landscape. The ability to shift one’s funds dynamically across asset classes such as cryptocurrencies, gold, forex and stock indices allows traders to capitalize on varying market conditions and economic cycles. 

2. Align with market cycles to maximize returns

From adopting an aggressive risk-on approach by positioning one’s portfolio in tech stocks and crypto, to rotating toward defensive assets like consumer defensive stocks and gold during times of volatility, the possibilities are endless for those who are well-versed with market cycles and the way they tend to affect asset prices.

For instance, during periods of heightened inflation or geopolitical uncertainty, allocating capital to gold can act as a hedge against currency devaluation, while bullish trends in equity markets provide opportunities for growth-focused investments in indices like the S&P 500 or Nasdaq-100.

3. Seize volatility-driven opportunities across markets

Similarly, forex markets offer liquidity and volatility-driven opportunities when major currencies react to macroeconomic events, such as interest rate decisions or trade policy shifts. For crypto traders, this strategy is particularly valuable, as it enables them to leverage their expertise in volatile environments while diversifying exposure to traditional assets that may exhibit lower correlation to digital currencies.

This is where all-in-one trading platforms, such as Bybit, facilitate this approach as they offer seamless multi-asset trading capabilities, zero-fee indices trading and advanced tools for efficient fund rotation. By adopting a cross-market strategy, traders can optimize their portfolios, reduce reliance on single-market performance and enhance resilience against unpredictable economic shocks.

The Bybit Gold&FX zero-fee indices trading advantage

As previously mentioned, Bybit Gold&FX offers numerous benefits to allow for frictionless trading as you’re rotating your funds across various markets. This includes the following advantages:

• Zero trading fees, which significantly reduces trading costs and maximizes potential trading gains

• Diversified market access that enables trading across forex, gold and stock indices

• MT5 integration so you have access to advanced trading tools like sophisticated charting and automated trading

• Sufficient leverage to amplify potential gains and losses for greater trading flexibility

• Enhanced liquidity to ensure efficient trade execution and minimize slippage

• Portfolio diversification beyond crypto holdings to potentially mitigate overall portfolio risk

• Copy trading features so you can follow expert traders

When coupled with MT5 integration, Bybit's zero-fee indices enable traders to efficiently move funds across diverse forex, gold and stock indices without incurring excessive trading fees. Combined with high leverage and robust liquidity, this ultimately enables rapid portfolio adjustments based on market conditions. The platform's comprehensive tools and copy trading features further streamline this process, minimizing friction and maximizing flexibility for traders seeking to capitalize on opportunities across various asset classes.

The bottom line

The current macro boom presents lucrative opportunities for crypto traders willing to diversify into traditional markets, such as gold and stock indices, while leveraging cutting-edge trading platforms like Bybit for seamless fund-rotation across asset classes. 

Whether investing in gold as a safe haven during economic uncertainty or capitalizing on stock market volatility fueled by earnings growth and dovish monetary policies, cross-market strategies empower crypto traders to position themselves strategically for success amidst the current unprecedented macro boom — an essential tactic for thriving in today’s interconnected financial ecosystem.

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