Great Run in Commodities Market versus the Rundown in Crypto Market

The past few months have been an interesting time for investors — especially those following the commodities and cryptocurrency markets. While commodities have seen a strong upward trend, the crypto market has experienced a significant decline, raising questions about what’s driving these movements and where they may lead next.

One key factor behind the bull run in commodities is the enormous money supply injected by governments during the pandemic. In countries like the United States and across Europe, stimulus packages were rolled out to help citizens navigate financial challenges. For instance, the U.S. government distributed close to $60,000 per family as part of its $5 trillion relief effort. This unprecedented monetary injection created excess liquidity, which in turn fueled inflation — particularly in sectors such as metals, housing, and real estate.

This inflation became visible in the rising cost of homes and construction materials, as commodity-linked investments soared. At the same time, cryptocurrencies also surged as investors looked for alternative assets. Bitcoin, Ethereum, and even meme-based coins like Dogecoin gained traction — until the market witnessed a sharp downturn.

The crash in cryptocurrencies was driven by multiple factors. Elon Musk’s tweets, for instance, created dramatic market reactions. Regulatory crackdowns from countries like China further rattled investors. As a result, speculative money began to flow out of crypto and back into safer assets like gold and silver, causing renewed interest in precious metals.

Is the Commodities Market Entering a Super Cycle?

To answer this, we need to look at the broader economic initiatives being launched globally. Many countries have started massive infrastructure projects to revive their economies and create employment. These projects demand large amounts of commodities — steel, copper, aluminum, and more. Simultaneously, lower interest rates and increased consumer spending have further boosted demand.

However, this surge in demand is largely driven by temporary factors — stimulus-induced consumption, recovery-based infrastructure spending, and artificially suppressed interest rates. While commodity prices are likely to rise in the short term, the argument for a long-term super cycle appears weak. Eventually, as global economies stabilize, demand may normalize and prices could level out.

Even within the commodities space, trends have been inconsistent. For instance, gold prices dipped for a while, while cryptocurrencies were making headlines for their rapid gains. The tables turned when speculative interest in crypto began to fade. Market influencers, policy decisions, and media narratives all played a role in shifting investor focus back to traditional assets.

Lessons from the Crypto Crash

The cryptocurrency market is highly volatile and driven largely by sentiment, social media trends, and speculative trading. Tweets from influential personalities, like Elon Musk, can send prices soaring — or plummeting — in a matter of hours. When China imposed strict regulations on crypto mining and trading, it added fuel to the fire, triggering a broader collapse across digital currencies.

As speculative funds exited the crypto space, traditional hedges like gold and silver became attractive again. Investors sought stability, turning to time-tested assets in response to the unpredictability of digital tokens.

Striking the Right Investment Balance

For individual investors, this volatility offers an important lesson: diversification is key. No matter how promising a particular asset may seem, putting all your money into a single basket — especially a speculative one like cryptocurrency — can be risky.

Gold, with its historical reputation as a safe haven, continues to serve as an effective hedge against market swings. It’s important for investors to assess their risk appetite, understand market conditions, and aim for a balanced portfolio that can weather different phases of the economic cycle.

How Vivekanand Business School Prepares Future Leaders for Market Realities

Financial markets can be tricky. One day, crypto is booming; the next, it’s crashing. Commodities swing with global demand, and policies shift faster than headlines can keep up. For students aiming to build a career in finance or business, simply following the news isn’t enough. It’s about understanding what’s really happening behind those numbers.

At Vivekanand Business School (VBS Mumbai), this kind of deeper understanding is part of everyday learning. The Vivekanand PGDM program focuses on making sure students don’t just memorize theories but actually learn how to connect them with what’s happening in the world around them.

Take the PGDM in Banking and Finance or Business Analytics, for example. These specializations cover everything from inflation and policy shifts to how digital currencies work. Instead of just studying from textbooks, students at VBS explore real situations—how global events affect markets, why crypto prices drop, or how interest rate changes impact investments.

One thing that really makes VBS stand out is how closely it stays tied to what’s happening in the industry. Students don’t just learn in classrooms. They attend expert talks, interact with finance professionals, and take part in discussions that link their subjects to current financial news. Whether it’s the ups and downs in the stock market or what’s driving commodity prices, they get to see it all through a practical lens.

There’s also a strong focus on using financial tools—like how to track portfolio performance, evaluate risk, or plan a smart investment strategy. These are real skills that recruiters look for, especially when hiring for roles like investment analysts or financial consultants.

But VBS doesn’t just stop at technical training. It also teaches students why ethics and responsible investing matter—something that’s easy to forget when markets get unpredictable. Students learn to think long-term, question short-term hype, and approach finance with a sense of responsibility.

And yes, students also get hands-on experience through workshops, simulation labs, and add-on certifications that make them ready for the real world.

Why This All Matters

The financial world is changing all the time. Crypto markets, inflation, commodity prices—everything is connected, and everything can change quickly. That’s why companies want professionals who can keep up, ask the right questions, and make smart decisions even when things are uncertain.

If you’re serious about a career in finance and want a learning experience that mixes theory with what’s really happening out there, VBS Mumbai might be the place for you. The Vivekanand PGDM is more than just a degree—it’s a launchpad for students who want to understand the markets, not just follow them.

Dr. Laxmi Goritiyal