Bitcoin’s price took a sharp hit when US President Donald Trump hinted at reinstating aggressive tariffs on Chinese goods and the European Union, but rebounded as tensions eased. The market’s sensitivity to macro headlines has been highlighted by a growing correlation between Bitcoin and gold prices.
The reaction to Trump’s statements was swift, causing a brief downturn in Bitcoin’s price as investors became wary of the potential economic consequences. However, when the US President announced a policy pause, the market breathed a sigh of relief, triggering a dramatic surge in Bitcoin’s price.
This turnaround has raised questions about Bitcoin’s status as a safe-haven asset, similar to gold. As macro uncertainty continues to dominate markets, investors are seeking refuge in traditional assets like gold and now appear to be turning to Bitcoin. The correlation between the two assets is growing, suggesting that investors may view Bitcoin as a way to hedge against economic shocks.
While the current calm may provide temporary relief, traders should remain vigilant as further comments from US leadership could reignite volatility in the market.
Source: https://ambcrypto.com/analyzing-how-bitcoins-price-is-dancing-to-the-tunes-of-trumps-tariffs