The dominant cryptocurrency traded above $83,000, while gold soared past $3,000 for the first time, as tariff-wary investors chose it as a safe haven asset.
Bitcoin Drags Its Feet as Gold Hits All-Time High
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Gold Soars Past $3K While Bitcoin Chugs Along Above $83K
Bitcoin ( BTC) saw modest gains over the past 24 hours, rising 0.76% to $83,486.74, though it remains down 6.14% over the past week. Meanwhile, gold reached as high as $3,004.86, an all-time high. BTC however, continued experiencing volatility as it traded within a 24-hour range of $79,931.85 to $83,465.91.
Market Metrics Snapshot:
- 24-hour trading volume: $28.56 billion (-15.89%)
- Market capitalization: $1.65 trillion (+0.53%)
- BTC dominance: 61.98% (-0.70%)
- BTC futures open interest: $48.38 billion (+2.11%)
- 24-hour liquidations: $66.72 million (longs: $44.56 million, shorts: $22.16 million)
Gold Hits Historic High, Bitcoin Sees Tepid Response
Spot gold briefly surged past $3,000 for the first time in history before settling at $2,992, according to Monex Precious Metals. The milestone is believed to be a reaction to President Donald Trump’s escalating trade tariffs, which have stoked investor concerns and driven demand for traditional safe-haven assets. While bitcoin is often dubbed “digital gold,” its muted response suggests that investors may still view physical gold as the preferred hedge against macroeconomic uncertainty.
Global Trade Tensions Escalate
The ongoing tariff dispute between the U.S. and its trading partners took another turn as the European Union retaliated against American steel and aluminum tariffs with a 50% tax on U.S. whiskey exports. In response, President Trump threatened a steep 200% tariff on European wine and spirits. These developments have heightened fears of a prolonged trade war, potentially weighing on global economic growth and influencing risk sentiment in the crypto market.
Fed to Hold Rates Steady, Cuts Expected in H2 2025
Bloomberg reports that the U.S. Federal Reserve intends to maintain current interest rates through the first half of the year, with two rate cuts expected starting in September. Lower interest rates typically benefit risk-on assets like bitcoin, as they reduce the appeal of fixed-income investments and increase liquidity in financial markets. However, for now, BTC remains under pressure from macroeconomic uncertainties.
