This week has been rough across crypto, stocks and even gold, as fears about interest rates and the global economy pushed investors and big whales into "low risk" mode.

For younger investors who are just starting out, the moves showed how quickly markets can change and how important it is the understand the bigger picture.

Crypto: Bitcoin crashes below 95k USD, Ouch.

Bitcoin fell sharply to around 95k, with more than 617 million in crypto position wiped out in a single day. Basically, many liquidated and traders who were using leverage to trade were forced to close their positions.

So what exactly happened and why?

Investors expect the US Federal Reserve to keep rates higher for longer, but this means that higher interest rates make risky assets like crypto much less attractive for them, ultimately closing their positions and liquidating their assets.

However, for the youths, this means that Crypto will still remain extremely volatile and big drops or big rises can happen almost instantly.

Whether you think your Crypto or Memecoins are Bullish or Bearish, it is important to avoid heavy leverage as this is what can cause most of the losses.

Again, think long-term and avoid panic trading; you have time.

Stock Market: The Tech Stocks Drag Many Indexes Down

US stocks ended sharply lower, with DOW dropping over 800 points. Tech stocks suffered the most as many investors shifted their assets into safer alternatives.

Many investors are concerned about the big tech stock prices being "overpriced" and much more than what it should be.

Many are worried about the slowing economic growth due to interest rate worries, causing them to get out of risk assets.

For younger investors, don't let daily drops scare you as long-term investing still works, slowly but surely.

Diversify your portfolio as big tech isn't always a guarantee.

Market dips can be chances to buy strong companies at lower prices, buy low and sell high.

GOLD prices slip as the dollar strengthens. Wait, it's rising?

The metal that many investors think is a safe bet, Gold, has been gaining traction recently. However, interestingly, its rise comes even after the US government reopened from its shutdown. Normally, you might expect relief to calm markets and reduce the "panic money" liquidations, but gold is doing its own thing, but why?

What is actually happening with Gold?

Gold prices have climbed to over 4.2k USD an ounce, putting it at a three-week high.

The reopening of the federal government after a record-breaking 43-day shutdown has pushed data flow back into markets, which introduces new uncertainties about growth, jobs, and inflation.

Analysts have seen medium-term upside for Gold supported by softer real interest rates, a weaker USD, and sustained buying from Emerging Market central banks.

Confusing, but this basically means that analyst expects Gold to trend upwards in the medium term because saving money is less attractive as people buy gold instead. The US dollar is also weakening, making gold cheaper globally. Big countries are also loading up on gold.

For the Youths, Gold acts like a "safe and stable asset" that benefits when the economy is shaky or when currencies lose power.

The Government reopening played a big role

You might ask, if the government is reopening, doesn’t that mean stability? Yes, it does, but to a certain degree.

During the shutdown, economic data releases were delayed. That creates a “data gap”. Once the government reopens, markets expect a tsunami of data, which adds uncertainty about how weak or strong the economy is.

If the economy turns out to be weak after the data release, then the FOMC might lean towards lower interest rates or other policies. Definitely good for gold.

What it means for the youths that are investing

If you already hold gold or maybe thinking of it, this momentum is your reminder that gold can always rise even when things look better.

It may be tempting to chase gold because everyone thinks its bullish and rocketing, but always remember, gold does not pay dividends. Gold is often more for protection, not big growth.

Monitor the upcoming US data and FOMC speeches, those will likely cause big swings in GOLD prices.