According to Monex Precious Metals, the spot price of gold surpassed $3,000 for the first time in history before dropping to $2,992. This milestone occurred amid an increase in trade tariffs announced by President Donald Trump, which heightened investor concerns and boosted demand for traditional safe-haven assets.
Although Bitcoin is often dubbed “digital gold,” its muted reaction suggests that investors still view physical gold as the preferred shield against macroeconomic uncertainty.
Bitcoin is trading without sharp fluctuations, while the price of gold continues to climb, hitting a record level.
Tensions in global trade are steadily escalating.
The ongoing dispute between the U.S. and its trading partners intensified when the European Union, in response to U.S. tariffs on steel and aluminum, imposed a 50% tax on U.S. whiskey exports.
In retaliation, President Trump threatened to impose steep 200% duties on European wine and spirits. These developments have fueled fears of a potential trade war, which could negatively impact global economic growth and influence investor sentiment in the cryptocurrency market.
Bloomberg reports that the U.S. Federal Reserve has no plans to adjust interest rates in the first half of the year, though a rate cut is expected in the second half.
Lower interest rates typically favor riskier assets like Bitcoin, as they reduce the appeal of fixed-income investments and increase liquidity in financial markets.
However, for now, Bitcoin remains under pressure due to uncertainty in the global economy.
Despite the current uncertainty, Bitcoin has potential for growth in the near term. This is tied to the possibility that lower interest rates in the second half of the year could make riskier assets more attractive.
Moreover, despite Bitcoin’s restrained response to current events, the cryptocurrency market continues to evolve, and many analysts are monitoring innovations and regulatory changes that could positively impact Bitcoin’s price.
The market is gearing up for an “altcoin spring” and a new all-time high (ATH) for Bitcoin this year. While most institutional investors and funds have opted for gold over Bitcoin to safeguard their assets during this period of heightened uncertainty, delays in physical gold deliveries—ranging from two to three months—may dampen institutional enthusiasm for the metal.
In that case, amid panic to protect cash from hyperinflation following Trump’s tariffs, institutional investors and big players may rush to buy Bitcoin. Soon, we might see Warren Buffett and Peter Schiff joining the queue. As of today, this is the basic recipe for Bitcoin hitting a new ATH in 2025.
