Markets start to get nervous - is a correction looming for gold and Bitcoin?

Although stocks and crypto markets were mostly trading higher on Monday, anxiety is also rising. There seem to be plenty of reasons to fear a correction. The number of articles about an AI bubble is increasing, analysts are convinced that gold is overbought, and Bitcoin is also struggling to reach a new ATH. Is a correction on the horizon after all?

Gold

The most predicted correction at the moment is one for gold. Some are talking about a plunge of as much as 20% after the precious metal set a new record last week. The fact that gold is rising alongside the stock markets is making analysts nervous.

On the geopolitical front, we’re looking anxiously to the fragile peace agreement in the Middle East, a key trade summit in China, the ongoing US shutdown and several important corporate earnings figures coming out this week.

Moreover, the shutdown has reduced macro data availability. Several US reports haven’t been released for weeks now due to the federal shutdown. The September inflation figure, in particular, is in high demand.

At the time of writing, Bitcoin is trading at$108,000 and is struggling to match its early-month climb. Buying volume is also declining, and Whales are putting in ever larger numbers of sell orders. All of this isn’t exactly making crypto investors happy.