Bitcoin’s rally toward $80,000 has taken a hit after U.S. tariff announcements triggered a broader market sell-off. With gold outperforming BTC, analysts are questioning whether Bitcoin’s “digital gold” narrative still holds weight.
Bitcoin Faces Pressure After Tariff Shock
Since President Trump’s tariff announcement, Bitcoin has dropped over 5%, mirroring declines in equity markets. While crypto bulls champion BTC as a safe-haven asset, recent price action suggests it still behaves like a risk asset rather than a hedge.
Market strategist Joel Kruger (LMAX Group) sees this moment as a key “turning point”, arguing that more investors are recognising Bitcoin’s store-of-value appeal. However, BTC’s correlation with equities remains strong, making its hedging potential questionable.
Gold Still Leads as the Safe-Haven Choice
Despite Bitcoin’s higher lows above $75,000, analysts at JPMorgan argue that gold remains the ultimate hedge against economic uncertainty.
“Bitcoin’s volatility and correlation with equities raise doubts about its ‘digital gold’ status,” said Nikolaos Panigirtzoglou of JPMorgan. Meanwhile, gold is down just 1.25%, trading around $3,126 per ounce, close to its record high of $3,200.
Bitcoin’s Cost of Production as a Safety Net?
One potential support level for Bitcoin is $62,000, JPMorgan’s estimated average cost of production. Historically, BTC prices have rarely dropped below mining costs for long periods, making this a key psychological level for traders.
Javier Rodriguez Alarcon, Chief Commercial Officer at XBTO, remains sceptical about Bitcoin’s hedge potential. “In practice, we’re still seeing a strong correlation between digital assets and broader risk markets in moments of uncertainty,” he noted.
What’s Next for Bitcoin?
Bitcoin’s trajectory now hinges on whether it can decouple from equities and reclaim its safe-haven status. If BTC holds above $75,000 and rebounds, bullish momentum could continue toward new all-time highs. However, if macroeconomic uncertainty deepens, gold could remain the dominant store of value while Bitcoin struggles with volatility.
For now, Bitcoin’s $80K breakout remains in sight, but whether it acts as a hedge or a risk asset is still up for debate.
