Bitcoin’s 40% Decline Contrasts Gold’s 50% Surge as Analysts Question Its ‘Digital Gold’ Status
Uncertainty surrounding U.S. President Donald Trump’s tariff policies has resurged, causing volatility in asset markets beyond equities. Cryptocurrencies, including Bitcoin, have plummeted once again, while gold and silver — traditional safe-haven assets — have surged, deepening the decoupling between asset classes. Bitcoin, once hailed as an inflation hedge and “digital gold,” has failed to move in tandem with gold during macroeconomic shocks, renewing doubts about its status as a safe-haven asset.
◇Bitcoin Falls to $63,000
According to Investing.com and others on the 24th, Bitcoin was trading near $64,000, down 2.78% from 24 hours prior. The previous day, it briefly dropped to the $63,000 level during intraday trading. Bitcoin had previously fallen to $62,000 during heightened military tensions between the U.S. and Iran on the 5th, and it has once again approached that level.
Ethereum, the second-largest cryptocurrency by market cap, has followed a similar trend. As of 9:10 a.m. that day, Ethereum was trading at $1,859.43, down 3.61%. Major cryptocurrencies such as Ripple (-0.6%) and Solana (-4.12%) also saw significant declines.
The direct cause of this plunge is attributed to the Trump administration’s so-called “Plan B” following a U.S. Supreme Court ruling. After the Court deemed existing reciprocal tariffs unlawful, President Trump immediately announced a new “global tariff” policy, reaffirming his intent to enforce tariffs.
As concerns over a renewed tariff war spread, funds rapidly exited cryptocurrencies, classified as risky assets. Analysts note that when policy uncertainty expands, investors typically offload volatile assets — a classic risk-aversion pattern. Jeff May, Chief Operating Officer (COO) of global blockchain firm BTSE, stated, “Sudden tariff hikes appear to be triggering panic selling among investors anticipating further market declines.”
◇Gold and Silver Surge…Safe-Haven Demand Strengthens Amid Dollar Weakness
In contrast, gold and silver rose sharply due to the fallout from Trump’s tariffs. On the day, international spot gold prices increased by 0.97% to $5,157.12 per ounce compared to the previous trading day. Silver futures also jumped over 7%, reflecting investors’ preference for safe-haven assets. Bloomberg News analyzed, “The ruling triggered dollar weakness, giving gold momentum. Heightened geopolitical risks and concerns over U.S. Treasury markets also drove funds into gold.”
In commodity markets, copper prices rose as well. On the London Metal Exchange (LME), copper reached $13,000 per ton, up over 1% from the previous trading day. This reflects expectations that U.S. tariff rates on China may decrease following the ruling, potentially boosting manufacturing recovery and industrial metal demand.
◇Bitcoin’s ‘Digital Gold’ Status Wavers
Industry observers are also noting the deepening decoupling between Bitcoin and gold.
According to TradingView, the price movements of the two assets have diverged sharply since October of last year. Over the past six months, Bitcoin has fallen over 40%, while gold has risen more than 50%, showing an opposite trend.
Marion Laboure, an analyst at Deutsche Bank, wrote in a recent report, “Bitcoin is no longer fulfilling its role as ‘digital gold.’ This sustained selling pressure signals that traditional investors are losing interest, and pessimism toward the broader cryptocurrency market is growing.”
