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\u2019s 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\u2019s price action increasingly mirror that of gold, rather than US tech stocks.<\/p>\n\n\n\n
The move comes as geopolitical uncertainty and macroeconomic turbulence ripple through markets following President Donald Trump\u2019s 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.<\/p>\n\n\n\n
Trump\u2019s 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 \u201cexceptionalism\u201d that previously powered a booming stock market. Against that backdrop, Bitcoin\u2019s detachment from the tech-heavy Nasdaq is being viewed as a potential validation of its status as a store of value.<\/p>\n\n\n\n
\u201cOne of the possible ramifications of the US decoupling is a revisit to the long-term Bitcoin bull case as a store of value,\u201d said Augustine Fan, a partner at trading platform SignalPlus. \u201cWe\u2019ve been critiquing Bitcoin as a leveraged Nasdaq proxy over the past year, but it has finally started to show some signs of decoupling.\u201d<\/p>\n\n\n\n
Bitcoin climbed as much as 2.9% on the day, while gold briefly soared past $3,500 an ounce \u2014 a record high \u2014 before retreating slightly. Meanwhile, the Nasdaq 100 looked set to recover after Monday\u2019s sharp selloff.<\/p>\n\n\n\n
\u201cIf Bitcoin continues to trade more like gold than a tech stock, the decoupling narrative will gather momentum,\u201d said Richard Galvin, co-founder of crypto hedge fund DACM.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n