# Gold and Silver Prices Hit New Highs

Why are other financial markets rising besides the cryptocurrency market?
① Impact of macro policies and economic expectations: The market generally expects the Federal Reserve to continue cutting interest rates. The low-interest-rate environment reduces borrowing costs for companies, making stocks and other assets more attractive. At the same time, under the pressure of the 2026 US midterm elections, the ruling party tends to adopt loose policies to win votes, providing liquidity and profit support for the stock market, gold, and other assets.
② Increased demand for safe-haven assets: Trump announced tariffs on European countries, which is seen as a signal of escalating geopolitical tensions and trade wars, triggering market risk aversion. Investors flocked to traditional safe-haven assets, such as gold prices reaching historic highs, while cryptocurrencies, as risk assets, were sold off.
③ Strong corporate earnings: Corporate profitability is an important foundation for stock market gains. The components of the S&P 500 index reported approximately 8% year-over-year earnings growth in the third quarter, maintaining growth for nine consecutive quarters. Earnings growth is expected to rise to 13.8% in 2026, giving investors reason to continue holding or even increasing their positions.
④ Structural issues within the cryptocurrency market itself: On one hand, the crypto market relies heavily on leveraged trading. When prices fluctuate sharply, high leverage accelerates losses, triggering forced liquidations and creating a vicious cycle of “decline—liquidation—further decline.” On the other hand, tightening global regulations exacerbate the fragility of the crypto market. Some institutional funds are beginning to cautiously withdraw, and ordinary investors are reducing holdings due to increased compliance costs, leading to tighter market liquidity.