Tether Gold Hits All-Time High as Gold Surges 14% Amid Market Uncertainty
1min read Tether Gold, a gold-pegged stablecoin, has reached a new all-time high, rising by 14% since the crypto market peaked in late February. This surge coincides with gold's ascent to $3,040, driven by economic uncertainties such as trade tensions and recession fears, which have led to a 30% decrease in the total crypto market cap. The debate over the "best crypto to buy" remains complex, with retail liquidity diminishing due to market fears and uncertainties.
While USD-pegged stablecoins offer protection against sharp declines, the dollar's growing inflationary pressure has become a concern. The U.S. dollar has experienced its worst start since the 2008 financial crisis, declining by 5.4% year-to-date. Meanwhile, the S&P 500 slipped into a technical correction, dropping over 10% from last month’s record high. This has led to a shift in investor sentiment towards "safe haven" assets like gold, which have emerged as a compelling store of value.
For gold-pegged stablecoins like Tether Gold, this shift presents upside potential. The gold price may be set for a correction as it meets the upper resistance of an ascending channel pattern that has marked tops since April. The Relative Strength Index (RSI) is hovering above the overbought threshold at 70, currently at 75, signaling possible buyer exhaustion. However, this could simply be a pause before the next leg up, with analysts pointing to stacking fundamentals ahead of a potential third gold cycle.
If gold breaks out from the channel, it could target highs of $3,560, representing a 17% advance from current prices—though this remains a long-term projection. While Tether Gold provides stable gains, it sacrifices the upside potential that crypto traders are accustomed to. This is where other opportunities, such as the Mind of Pepe ($MIND), step in, giving traders a chance to get in early and stay ahead of increasingly scarce high-gaining opportunities.
Ask Aime: What's guiding the surge in Tether Gold's value?
