Gold breaks through 4000 USD to reach a historic high! Luxembourg's sovereign fund enters the market, and Bitcoin becomes the new darling for institutional hedging.

Driven by multiple factors including global market turbulence, rising industrial demand, and the continued weakness of the dollar, the precious metals market has reached a historic moment: Spot gold (XAU) soared to $4,059 per ounce, breaking the key psychological barrier of $4,000 for the first time; at the same time, silver (XAG) also reached a historic high, surpassing $50. As precious metals set historical records, the institutional acceptance of digital gold Bitcoin has also made a breakthrough: The Luxembourg Sovereign Wealth Fund announced that it will allocate 1% of its $730 million assets to Bitcoin ETF, becoming the first national fund in the Eurozone to make such an investment. This series of events marks an accelerated shift in global asset allocation towards tangible store of value tools, with risk aversion and anti-inflation narratives at unprecedented highs.

Hedge Rush: Gold and Silver Break Historical Barriers

The ongoing turbulence in the global financial markets, the banking crisis, and geopolitical uncertainties have greatly enhanced gold's role as a safe-haven asset.

· A new milestone for gold: Spot gold has soared to a new high of 4,059 USD/ounce, breaking through the key resistance level of 4,000 USD. This milestone reflects the growing panic among investors and a weakening trust in the global financial system.

· Drivers of long-term dollar weakness: The rise of gold is attributed to fears of inflation and the long-term structural erosion of the dollar's purchasing power. Data shows that since 1960, the consumer purchasing power of the dollar has lost over 90%. After the Nixon administration ended the dollar's peg to gold, gold prices adjusted significantly, highlighting the sharp devaluation of the dollar's value against gold.

· Strong performance of silver: Silver prices have also broken through 50 USD for the first time, setting a new historical high. In addition to following the rise of gold, silver's strong performance is also supported by rising industrial demand and increasing supply shortages.

Technical Analysis: Gold Aiming for 4300 USD, Silver Targeting 250 USD

From a technical perspective, both gold and silver are in a strong bullish structure after a breakout, and short-term corrections may be seen as buying opportunities.

· Key levels of gold:

· Resistance and Breakthrough: The daily chart shows that the 4,000 USD to 4,200 USD range is a strong long-term technical resistance area. If a close above 4,100 USD can be confirmed, it would signal an accelerated breakout and could trigger further rise.

· Pullback signal: If gold closes below $3,900 on Friday, it may confirm a potential top formation, indicating a strong correction.

· Historical pattern prediction: Based on the price structure of the past two years (the symmetrical triangle breakout pattern similar to 2024 and 2025), if the $900 rise in 2024 repeats, gold prices may peak in the range of $4,000 to $4,300.

· The immense potential of silver: Silver has successfully broken through long-term historical resistance near 50 USD. The weekly chart shows a classic "cup and handle" pattern, which is a strong bullish structure. If the silver price can successfully close above 31 USD (although the original text mentions that silver has broken through 50 USD, this refers to the key breakout level for confirmation of the pattern), it will confirm a significant breakout and could lead to a potential rise towards 250 USD to 300 USD in the coming years, which means an increase of up to 700% from the breakout level of 31 USD.

Institutional Breakthrough of Digital Gold: Luxembourg Sovereign Fund Invests in Bitcoin

While precious metals are surging, the digital asset sector has also welcomed a significant breakthrough in institutionalization, highlighting Bitcoin's status as a new form of store of value.

· Eurozone's first: Luxembourg's Intergenerational Sovereign Wealth Fund (FSIL) announced that it has allocated 1% of its assets (approximately 7 million USD) to a Bitcoin ETF, becoming the first national fund in the Eurozone to make such an investment.

· Strategic consideration: The decision announced by Luxembourg's Finance Minister Gilles Roth highlights the increasing legitimacy of Bitcoin as an alternative investment, store of value, and inflation hedge.

· Demonstration of a compliant path: Under the new authorization, the fund can allocate up to 15% of its assets to alternative assets (including crypto assets). By choosing ETFs instead of directly holding Bitcoin, Luxembourg provides a replicable risk exposure framework for other sovereign or pension funds within the regulated scope.

· Boosting market demand: The entry of Luxembourg is expected to accelerate the liquidity and demand for Bitcoin-linked products in Europe. Global Bitcoin ETFs have absorbed over $168 billion, accounting for about 7% of Bitcoin's total market capitalization.

European Crypto Trends and the Macroeconomic Correlation of Bitcoin

Luxembourg's actions are not an isolated event; they align with the broader trend in Europe towards structured and compliant exposure to crypto assets.

· Regional Trends: The openness of European countries to crypto assets is increasing. For example, Switzerland is a center for digital asset banking and ETF issuance, German asset management companies are expanding crypto products under BaFin regulation, France has licensed multiple crypto custody and tokenization companies, while Liechtenstein is leading blockchain regulation with its comprehensive Token Act.

· Capital flow support: The US Spot Bitcoin ETF market continues to maintain strong momentum. On October 8, 2025, the total net inflow of all funds reached 440.7 million USD, with BlackRock's IBIT contributing 426.2 million USD. Inflows for the week approached 1.3 billion USD, highlighting the ongoing demand from investors for Bitcoin.

· The signaling effect is greater than the capital effect: Market participants believe that the signaling effect of Luxembourg is more important than the capital itself. It may encourage other European country funds or central banks to consider similar diversified investments, thereby deepening the institutional infrastructure of Bitcoin.

Conclusion

Gold, silver, and Bitcoin, the three major store of value assets, have experienced a historic macro resonance during the same period. Gold broke through 4,000 USD, silver broke through 50 USD, reflecting that the risk aversion sentiment and anti-inflation narrative of traditional safe-haven assets have reached unprecedented heights; meanwhile, the Luxembourg sovereign wealth fund's investment in Bitcoin ETF signifies that Bitcoin has officially been included in the macro asset allocation tools at the institutional level. Against the backdrop of ongoing global instability and the structural erosion of fiat currency purchasing power, both physical precious metals and digital gold will continue to serve as important tools for value preservation and diversification, leading global capital toward new safe-haven heights.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.