Bitcoin Faces Selling Pressure as Gold Outperforms Amid Tariff-Induced Market Turmoil

Bitcoin (BTC) has experienced a steep decline of over 5% since U.S. President Trump’s latest tariff announcement on Wednesday evening, contributing to the ongoing volatility in the crypto market. Once touted as “digital gold” due to its potential to act as a store of value, Bitcoin has yet to prove itself as a non-correlated safe haven asset, especially in the face of broader market instability.

Despite the pullback, some market participants remain optimistic. Joel Kruger, a market strategist at LMAX Group, noted that Bitcoin’s appeal as a diversification tool in uncertain times is growing. “This moment feels like a turning point,” Kruger said. “We are witnessing an increasing number of market players viewing Bitcoin as a store of value amidst the current economic turmoil.” He pointed out that while traditional equities, including the Nasdaq and S&P 500, have sunk to fresh 2025 lows, Bitcoin is holding strong above its recent low of $75,000, a level often referred to as a “higher low” by technical analysts.

However, other analysts are not as convinced. Javier Rodriguez Alarcon, the chief commercial officer at XBTO and a former Goldman Sachs executive, explained that Bitcoin’s correlation with broader risk markets remains a major obstacle to its claim as a hedge against volatility. “Despite the narrative that Bitcoin could shield investors from dollar-centric risks, we are still seeing significant correlation between digital assets and traditional markets during times of uncertainty,” Alarcon said.

Gold, on the other hand, continues to shine in the current environment. JPMorgan’s analysts reiterated their bullish stance on gold, stating that it remains the primary beneficiary of currency debasement trends. “Bitcoin’s volatility and its strong correlation with equities challenge its role as ‘digital gold,’” said Nikolaos Panigirtzoglou, an analyst at JPMorgan. He emphasized that gold remains the asset of choice for investors seeking stability amid market turmoil.

Despite Bitcoin’s recent pullback, its price is still above JPMorgan’s estimated cost of production, which sits at $62,000, providing a lower support level. Meanwhile, gold has only seen a minor dip of 1.25%, trading at $3,126 per ounce, near its all-time high of $3,200.

As traditional assets like gold continue to be the go-to safe haven during times of crisis, Bitcoin’s ongoing volatility and its lack of independence from broader risk markets continue to undermine its position as a store of value.