Bitcoin has fallen sharply in recent market action, coinciding with a broad sell-off in stocks following the Trump administration's announcement of new tariffs on major trading partners. Meanwhile, gold cemented its status as a traditional safe haven asset, rising to $2,915 an ounce today, approaching last week's record high of $2,950. While gold's rise signals investors' growing demand for stability amid economic uncertainty, analysts argue that Bitcoin has yet to fulfill its role as a reliable hedge. “Bitcoin has never really been a safe haven asset, merely an aspirational asset,” Uldis Teraudklans, Chief Revenue Officer at Paybis, said in a statement. “Nevertheless, the promise remains and every cycle critics revisit this so-called ‘failure,’ but my perspective is that BTC has consistently been a risk asset.” Teraudklans also suggested that BTC’s long-term trajectory could still lead it to safe haven status, but only when its market cap rivals that of gold can its role as a reliable hedge be fully appreciated. Related News: Bitcoin Price Decline Dominates, Ethereum Saw Below $ 2,000 - What Causes the Decline? Here is the Latest Situation André Dragosch, Head of European Research at Bitwise, also noted Bitcoin’s short-term volatility. “In the very short term, Bitcoin appears to be most sensitive to changes in the global growth outlook, which has certainly deteriorated recently,” Dragosch said. “However, in the medium to long term, BTC remains a major contender for the world’s next reserve asset and should also benefit from the return of easy monetary policy should a U.S. recession truly occur.” The Trump administration’s tariff policies have further added to market uncertainty. Recent announcements include tariffs on goods from China, global tariffs on aluminum and steel, and threats of 25% tariffs on EU imports. “US President Donald Trump’s latest tariff announcement has shaken markets and increased economic uncertainty,” said BullionByPost General Manager Pete Walden. “Gold, the ultimate safe-haven asset, has benefited tremendously as investors seek protection from uncertainty.” *This is not investment advice. Continue Reading: Bitcoin Plummets as Ounce of Gold Races to a Record – Experts Assess the Latest Situation
