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Bitcoin Slips as Gold Soars – Is BTC Losing Its Safe Haven Status Amid Tariff Wars?

Bitcoin Slips as Gold Soars – Is BTC Losing Its Safe Haven Status Amid Tariff Wars?

CryptoNewsCryptoNews2025/03/06 08:55
By:Arslan Butt
Last updated: March 6, 2025 00:29 EST
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Bitcoin (BTC) surged past $90,000, gaining over 7% in a single day, but it’s still down 3% year-to-date (YTD). Meanwhile, gold has climbed nearly 10% YTD, drawing investors seeking stability amid escalating trade wars and economic uncertainty.

This stark divergence has sparked debate: Is BTC’s role as a hedge against market turmoil fading?

Gold's Soaring Rally & Metal Sector Struggles…
Gold’s Surge: Gold prices have soared ~40% in a year, hitting record highs amid inflation concerns and geopolitical tensions. #GoldPrices   #GeopoliticalTensions   #Tariffs #InvestmentStrategy #StockMarket pic.twitter.com/9YDu541vLp

— Shah Investor's Home Ltd (@shahinvestors) March 1, 2025

Gold Rallies as Trade Wars Escalate, Bitcoin Stumbles

Gold extended its rally on March 4 after former U.S. President Donald Trump announced 20% tariffs on Chinese imports and the end of exemptions for Mexico and Canada. Investors rushed to gold as a safe haven, pushing prices to new highs.

BTC, however, took a hit. The crypto market shed 10%, wiping out over $300 billion in market value. This volatile reaction suggests that when uncertainty spikes, investors still lean toward traditional assets rather than digital gold.

Key takeaways:

  • Bitcoin briefly hit $90K, but remains 3% down in 2025, while gold is up 10%.
  • Trump’s tariff plan boosted gold, but Bitcoin plunged 10%.
  • Investors may be shifting away from BTC in times of geopolitical risk.

BTC Faces Pressure as Regulatory Concerns Mount

Bitcoin’s safe-haven status has been challenged by regulatory fears, macroeconomic instability, and investor sentiment shifts. Trump’s tariff move triggered over $1 billion in liquidations, with BTC accounting for $370 million.

Tariff turmoil sparks $1 billion in liquidations: CoinGlass
According to data from CoinGlass, altcoins like SOL, XRP and ADA saw more than $150 million in liquidations on March 4. pic.twitter.com/P2yjTrEREi

— Wu Ke (@DaltonHarmon13) March 4, 2025

Data from CoinGlass revealed that 87% of liquidated positions were long bets, highlighting the market’s fragile sentiment. The impact wasn’t limited to crypto—the S&P 500 dropped 2%, reflecting broad risk-off behavior.

BTC initially soared to an all-time high of $108,786 in January after Trump’s election victory. But its fall below $80,000 marked a 26% drop, signaling that macro events continue to shake BTC’s stability as a hedge against financial uncertainty.

Key takeaways:

  • BTC’s safe-haven role is under scrutiny amid market turbulence.
  • Over $1B in liquidations followed Trump’s tariff plan.
  • BTC fell 26% from its peak, exposing its vulnerability to macro shocks.

Long-Term Outlook: Can Bitcoin Regain Momentum?

Despite the recent slump, Bitcoin’s long-term case remains strong. Institutional adoption continues to grow, and Bitcoin ETFs are seeing inflows that rival gold ETFs. Analysts argue that BTC’s scarcity (21M cap) and increasing institutional interest will keep its bullish trajectory intact.

🚨BREAKING:

Yesterday the Spot $BTC ETF saw $94.3M inflow.

The Spot $ETH ETF saw $41.9M outflow.

INSANELY BULLISH FOR #BITCOIN 🔥 pic.twitter.com/KDL9VRKu7w

— CryptoGoos (@crypto_goos) March 1, 2025

However, regulatory risks and trade tensions remain headwinds. The U.S. government’s stance on crypto regulation and broader economic conditions will likely determine BTC’s near-term price action.

Bitcoin (BTC/USD) Eyes Breakout as Bulls Test $92K Resistance

Bitcoin is now trading at $92,200, up 0.66%, as bulls attempt to reclaim momentum. The price has bounced off $85,300 support and is now challenging $94,900 resistance.

The 50-day EMA at $88,200 is holding firm, reinforcing the uptrend. A clean break above $94,900 could open the door for $97,000 and a retest of $99,500.

Bitcoin Slips as Gold Soars – Is BTC Losing Its Safe Haven Status Amid Tariff Wars? image 1

However, a rejection could lead to another pullback, with $88,300 and $85,300 as key support levels. Watch for volume confirmation—strong buying could confirm a breakout, while a lack of momentum may signal further downside.

Final Thoughts: BTC is at a crossroads. While short-term volatility continues, its long-term fundamentals remain strong. Whether BTC can reclaim its safe-haven status in the face of geopolitical risk and economic shifts remains the key question for investors.

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Bitcoin Slips as Gold Soars – Is BTC Losing Its Safe Haven Status Amid Tariff Wars? image 2

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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