Gold experienced its largest one-day drop in over a decade, plummeting 6.3% and wiping out nearly $1.75 trillion in value. This steep correction followed Monday’s record high of $4,380 per ounce, triggered by algorithmic trading activity and profit-taking. Bitcoin briefly surpassed $114,000 before retreating to around $108,000, sparking $150 million in short liquidations. Analysts attribute gold’s sudden decline to profit-taking and algorithmic flows, while Bitcoin’s volatility reflects shifting investor behavior. The contrasting movements underscore a potential shift in capital allocation between these assets. While gold dipped to levels not seen since 2013, analysts point out that the drop could represent short-term market correction rather than a long-term trend reversal. The $4,000 mark, considered a psychological level for gold, currently acts as a support, with traders seeking to defend this level. However, if the price breaks below this level, losses could escalate toward $3,850 or even $3,800. Meanwhile, Bitcoin’s bullish sentiment briefly propelled its price towards $114,000 before retracing. The volatile cryptocurrency sparked over $150 million in short liquidations as traders attempted to cover their positions. The contrasting market behavior raises questions about capital rotation between gold and Bitcoin, particularly during times of uncertainty.