According to The Kobeissi Letter, gold surged by $60 in a matter of minutes at 9:50 AM ET today, despite the absence of any major news. Gold prices have now climbed 5% from last week’s low, even as the S&P 500 officially enters a new bull market (source: The Kobeissi Letter, May 20, 2025). This sharp rise in a traditional safe haven asset during a risk-on equity rally signals heightened underlying market uncertainty and growing demand for portfolio hedges. For crypto traders, this unusual gold price action suggests investors may continue to seek non-traditional stores of value, including Bitcoin and leading altcoins, as part of a broader risk management strategy. Closely monitoring gold and crypto market correlations is now critical for identifying shifts in capital flows and potential volatility in digital asset prices.

According to The Kobeissi Letter, the US labor market is showing significant weakness beneath the surface, with permanent job losses rising by 105,000 in April to 1.92 million—marking the highest level since October 2021. Since September 2022, these losses have surged by 737,000, or 63%, signaling a deteriorating employment landscape (source: The Kobeissi Letter, Twitter, May 14, 2025). For cryptocurrency traders, this growing economic uncertainty often translates into heightened volatility across digital assets as investors seek alternative hedges and reassess risk. Historically, worsening labor market data has led to both safe-haven flows into Bitcoin and altcoins as well as rapid liquidations, depending on broader macro sentiment. Traders should watch for increased price swings and liquidity shifts in major crypto pairs following such labor data releases.