Key takeaways
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Gold prices rose above $4,100 an ounce, marking a new all-time high as investors move towards safer assets.
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Following the October 10 cryptocurrency flash crash, billions of dollars have reportedly flowed out of digital asset markets.
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CoinGlass reported $21 billion in outflows from Binance alone, although the exchange disputed the figures.
Investors are fleeing digital assets in search of safe-haven gold, which hit a record high of more than $4,100 an ounce on Monday as the cryptocurrency market continues to shed cash.
Spot gold rose 2.2% to $4,106 an ounce on Tuesday, after earlier hitting a record high of $4,116.
U.S. gold futures for December delivery closed up 3.3% at $4,133, extending a rally that has seen the metal rise 56% so far this year, Reuters reported.
After breaking the record high of $4,000 last week, gold has continued to rise amid trade war uncertainty and looming US interest rate cuts.
Speaking to Reuters, Phillip Streible, chief market strategist at Blue Line Futures, estimated that gold could reach more than $5,000 by the end of 2026.
Gold’s rise comes as billions of dollars continue to flow out of crypto markets following last week’s cryptocurrency flash crash.
According to data from CoinGlass, billions of dollars have left exchanges in the last seven days.
The blockchain analyst reported that $21 billion had left the Binance exchange alone, although the company has since disputed the data.
“I just asked about the statistical logic of this data platform, which is the token price of 7 days ago and the token price of today, that is, using the floating market profit and loss as an indicator,” Binance co-founder Yi He wrote on X.
In addition to the exits, Binance responded to allegations from Limitless Labs CEO CJ Hetherington that the company was dumping tokens on the open market.
The CEO also posted an alleged “offer” from Binance asking for approximately 8% of its token supply, along with security deposits.
Binance strongly denied the allegations, calling them “false and defamatory,” while emphasizing that it maintains confidentiality in listing communications.
“These publications have damaged the integrity of what the industry and community clearly understand and know to be sensitive and confidential information,” the company wrote in X.
The exchange said it reserved all its rights, including “taking legal action to protect our interests.”
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