Is Bitcoin the Next Safe Haven Amid Tariff Turmoil?
The tariff announcement has sent U.S. stocks on a wild ride, soaring one day and crashing the next. Meanwhile, traditional safe havens like U.S. Treasuries are being dumped, with yields spiking. The $USD (USDindex.FX)$ has tumbled below 100, its weakest in two years.
This rare simultaneous drop in stocks, bonds, and the dollar leaves investors with few options to reduce risk. Gold $Gold - main 2402(GCmain)$
Meanwhile, $Bitcoin (BTC.CC)$ has shown resilience in the tariff storm, with lower volatility than stocks. This could be due to a couple of factors: cryptocurrencies seem to dodge the direct tariff blows that impact stocks, and after several sell-offs in the past month, Bitcoin’s leverage appears lower. That strength has fueled a rebound from a weekly dip of $75,000 to about $82,000.
Can Bitcoin Rival Gold as a Safe Haven?
Looking ahead, tariff uncertainty persists. With tariffs delayed by 90 days, sectors like semiconductors and autos—deeply tied to global supply chains—remain vulnerable to policy shifts, potentially driving further price swings.
Gold's up 22% this year, while Bitcoin's down over 12%. But could it join gold as a go-to safe haven?
Joel Kruger, market strategist at LMAX Group, thinks so. "Investors are increasingly waking up to Bitcoin’s value as a hedge during global market turbulence," he said, pointing to its recent outperformance as a reason to include it in portfolios.
Some argue tariff risks are already priced into crypto markets. Charles Hoskinson, Cardano's founder, said in an interview that future tariff announcements are likely a "dud" for crypto. As markets digest the tariff shock, more capital could flow into cryptocurrencies.
Bitcoin, now well below its January peak of $100,000, could reclaim those highs once volatility stabilizes, according to Matt Hougan, CIO at Bitwise Asset Management.
Hoskinson is even more bullish, predicting Bitcoin could hit $250,000 this year. "Markets will stabilize, adjust to the new normal, and then the Fed will cut rates, unleashing fast, cheap money that will pour into crypto," he said.
Looking further, Hoskinson sees a regulatory tailwind. He expects stablecoin laws and the Digital Asset Market Structure and Investor Protection Act to pass, paving the way for giants like the "Magnificent 7"to embrace crypto.
Not everyone's sold. Greeks.live analysts caution that crypto's stuck in a rut—no fresh cash, no new stories, and wary investors. They see a "black swan" looming and recommend cheap puts to play defense.
Bitcoin's tariff-proof grit is turning heads. Whether it can rival gold as a safe haven is up for debate, but for investors hunting diversification, it's a story worth tracking.
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