Surging cryptocurrency begins to trade more like gold amid weak dollar and rising geopolitical uncertainty
Bitcoin (BYC.X) surged to nearly $90,000 on Tuesday, marking its highest level since early March and signaling a potential shift in how the world’s largest cryptocurrency behaves in relation to traditional markets. The nearly 20% rally since its April 7 low has revived optimism among crypto bulls who are watching Bitcoin’s price action increasingly mirror that of gold, rather than US tech stocks.
The move comes as geopolitical uncertainty and macroeconomic turbulence ripple through markets following President Donald Trump’s announcement of broad-based tariffs on both allies and rivals. While Bitcoin initially dipped with other risk assets, it has since rebounded sharply, bolstered in part by a weakening US dollar and growing concerns about the direction of US monetary policy.
Trump’s recent criticism of Federal Reserve Chair Jerome Powell for failing to cut interest rates quickly enough has further roiled investor sentiment, shaking confidence in the so-called era of US “exceptionalism” that previously powered a booming stock market. Against that backdrop, Bitcoin’s detachment from the tech-heavy Nasdaq is being viewed as a potential validation of its status as a store of value.
“One of the possible ramifications of the US decoupling is a revisit to the long-term Bitcoin bull case as a store of value,” said Augustine Fan, a partner at trading platform SignalPlus. “We’ve been critiquing Bitcoin as a leveraged Nasdaq proxy over the past year, but it has finally started to show some signs of decoupling.”
Bitcoin climbed as much as 2.9% on the day, while gold briefly soared past $3,500 an ounce — a record high — before retreating slightly. Meanwhile, the Nasdaq 100 looked set to recover after Monday’s sharp selloff.
“If Bitcoin continues to trade more like gold than a tech stock, the decoupling narrative will gather momentum,” said Richard Galvin, co-founder of crypto hedge fund DACM.
Investor sentiment appears to be shifting. U.S.-listed Bitcoin ETFs saw $381 million in inflows on Monday, the largest daily total since January. According to Delta Exchange analyst Riya Sehgal, if Bitcoin can maintain a level above $88,800, it may set the stage for further gains, with a target range between $92,000 and $94,000.
You might like this article:GameStop CEO Ryan Cohen Must Face Lawsuit Over $47 Million Bed Bath & Beyond Stock Windfall
