Is Bitcoin competing against gold as safe haven bet amid Trump's tariff uncertainty? EXPLAINED
This sharp rise comes as global stock markets decline, driven by trade and tariff tensions sparked by US President Donald Trump's tariff notices to over 20 countries. The rally also marks the end of a two-month lull in the cryptocurrency market, with Ether rising above $3,000 for the first time since February.
' The milestone comes amid growing allocations into bitcoin from institutional & corporate treasuries. They are accumulating bitcoin aggressively. Strategy Inc & GameStop Corp, have joined the ranks, announcing board‑approved Bitcoin purchases. Now bitcoin looks like a safe haven asset like gold against the market uncertainity, like war, trade tariffs & political unstability,' said Anuj Gupta, Director, Ya Wealth Research & Advisory.
Gold vs Bitcoin
Sugandha Sachdeva- Founder-SS WealthStreet, believes that Bitcoin is increasingly earning the moniker 'digital gold' because, like the yellow metal, it tends to attract capital whenever traditional risk assets wobble.
Risk appetite faltered, but Bitcoin after an initial dip to $74,420 rebounded sharply, surging to a record $112,000 in May and still hovering near $111,150. That's a 49 per cent advance off its April low, far outpacing gold's 12 per cent rise from its April trough of $2,956.
' With the US dollar retreating against major currencies, investors have migrated toward scarce, non-yielding stores of value. Both gold and Bitcoin benefit, but Bitcoin's thinner market depth magnifies price swings on incremental flows. Further, Bitcoin's fixed 21 million-coin supply shields it from the kind of balance-sheet expansion that debases fiat currencies an attribute that resonates as global sovereign debt scales fresh highs. However, the key difference is that central banks continue to diversify into gold, reinforcing its safe-haven pedigree. By contrast, official adoption of Bitcoin remains tentative, suggesting sovereign demand could be a future, rather than current, driver of flows,' Sachdeva said.
The post-tariff rally underscores that Bitcoin, despite its higher volatility, is starting to mirror gold's role as a refuge when policy shocks rattle conventional markets. As long as debt overhangs grow and the dollar stays soft, the search for debasement-resistant assets should keep Bitcoin in demand alongside bullion, she added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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