Bitcoin’s Struggles Amid Market Turmoil
Since President Trump’s tariff announcement on Wednesday evening, the financial markets have taken a significant hit, resulting in a decline of more than 5% for bitcoin (BTC). Once again, this cryptocurrency is letting down its supporters who have long promoted its potential as a store of value or as a non-correlated safe haven asset in the face of fluctuating risk markets like stocks.
Joel Kruger, a market strategist at LMAX Group, reflected on the situation, stating, “This moment feels like a turning point.” He noted that there is a growing interest among market participants in bitcoin’s appeal as a store-of-value asset and as an effective diversification tool amidst widespread economic uncertainty.
Kruger pointed out that while both the Nasdaq and S&P 500 indices have plummeted to new lows not seen since 2025, bitcoin has managed to maintain its position well above its year-to-date low of $75,000—something that technical analysts refer to as creating “higher lows.”
However, not everyone shares this optimistic viewpoint. Javier Rodriguez Alarcon, chief commercial officer at the crypto exchange XBTO, expressed skepticism about bitcoin’s role as a hedge against volatility tied to the U.S. dollar. He stated, “Despite discussions suggesting that bitcoin could serve as a safeguard against dollar-centric volatility, we are still observing a strong correlation between digital assets and broader risk markets during uncertain times,” as he conveyed through an email.
Gold Remains the Go-To Safe Haven
In the midst of these developments, JPMorgan analysts have reiterated their stance on gold as the preferred safe haven asset. Nikolaos Panigirtzoglou and his team commented, “Bitcoin’s volatility and its correlation with equities raise important questions regarding its narrative as ‘digital gold.'” They further noted, “We foresee gold continuing to benefit significantly from the ongoing debasement trade.”
Despite bitcoin’s recent downturn, it still trades above JPMorgan’s estimated average production cost of $62,000, which has historically served as a crucial lower boundary for the asset. As for gold, it experienced a slight decline of just 1.25%, trading at approximately $3,126 per ounce, while remaining close to its record high of around $3,200.
