How Trump’s trade war influences gold

Bitcoin Or gold? Or Bitcoin And gold? Investors weigh where they can place their money in times of uncertainty – and no time is more uncertain than now.

President Donald Trump or threats of rates set up with markets, which means that “risk-on” assets such as crypto are less attractive.

The gold price hit a new high Monday, while Bitcoin fell below $ 93,000, by around 14% compared to his high price that was determined on January 20. The correlation of Bitcoin with the precious metal has fallen considerably because investors come to more traditional safe port activa. , experts said Decrypt.

Bitcoin proponents have long claimed that the unique sales argument of the cryptocurrency is that it is a long-term storage of value-such as gold. And sometimes, she Are Correled: the two assets have met in the past when investors have done that complicated To a strong dollar.

But things are now in the air that President Donald Trump has taken on and has issued a flurry of dramatic orders, and the 90-day correlation of Bitcoin with gold has remained almost zero, Datadicider Kaiko Kaiko said Decodeer.

An example: the new supreme commander implemented Rates against Canada, Mexico and China on Saturday, which means that crypto prices fall sharply.

After a “friendly conversation” with Mexican President Claudia Sheinbaum two days later, he decided to pause rates – –leading to a rebound In the price of Bitcoin. In the meantime, gold rose. Trump later agreed with a similar break with Canada, because the two countries try to close a deal, while the rates against China eventually came into force.

“The Trade War could decoupling the correlation in the short term, because gold is a more established ‘Safe Haven’ active, while Bitcoin is often seen as a safe Haven-Current ownership of a large investor base that also has a very speculative risk -AsSaste is trading meme coins and technical shares, ”said Amberdata Director of Derivaten Greg Magadini Decrypt.

The reason for the disconnection is that Bitcoin still performs less as a safe haven and more as a risk assets, such as technical shares. The largest cryptocurrency per market capitalization alone in the last seven days is from $ 105,893 per coin to just $ 92,876, Coingecko to show.

“Although Bitcoin has drawn indiscriminate investors as a similar alternative value of value, the higher volatility makes it less reliable in times of economic uncertainty compared to gold,” said Michael Podch, co-founder and CEO of Gold Investment Platform ARGO, said Decrypt.

Bitcoin as an asset still finds his feet, say a few (Including Wall Street Titan BlackRock), And although the long-term winnings are by far surpassing gold, the 5000-year-old physical property is still the safe haven in times of chaos.

“Investors do not like uncertainty and Donald Trump brings a lot of uncertainty,” said Ria Advisors Portfolio Manager Michael Lebowitz Decrypt.

Edited by Stacy Elliott