Recently, gold prices broke through the $4,500 mark, and there is an interesting political economy story behind this rally.

As the 2026 US midterm elections approach, the market is betting on a return to aggressive liquidity policies. Rumors suggest that Hasset might be leading the presidential nomination, while Trump has set a bottom line—no rate cuts, no chance of securing the position. This expectation has directly driven up two types of assets: gold and Bitcoin.

The underlying logic is quite clear. Both gold and BTC essentially hedge the same risk—the devaluation of US dollar credit. When the market expects the Federal Reserve to be pressured by politics into flooding the market with liquidity, both traditional safe-haven assets and crypto assets tend to appreciate simultaneously. This is somewhat reminiscent of the game among central banks during the Plaza Accord era, but this time, the crypto community is also involved.

Interestingly, within this expectation, some high-consensus privacy coin communities (such as the ZEC ecosystem and its derivatives) are beginning to become new safe havens for funds. Compared to purely speculative coins, these communities, supported by actual privacy needs, tend to be more resilient in an environment of liquidity glut.

The most direct indicator is BTC— as the largest crypto asset, its price movement is increasingly synchronized with gold, indicating that institutional investors have integrated both into the same hedging framework. If you want to profit, you need to understand this logic.