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Market Update: Bitcoin Gains as 'Digital Gold'; Ethereum -3%

While gold rockets from one record to the next, Bitcoin also seems to benefit from its image as 'digital gold'.

By Mike Hesp
• 2 min read
Market Update: Bitcoin Gains as 'Digital Gold'; Ethereum -3%

While gold rockets from one record to the next, Bitcoin also seems to benefit from its image as 'digital gold'. On Tuesday morning, the leading cryptocurrency topped $88,000, a sign that investors are increasingly turning to Bitcoin as an alternative to traditional safe havens.

For the broader crypto market, it isn’t all sunshine. Ethereum shed more than 3% in the last 24 hours. The ETH/BTC ratio fell to its lowest in more than five years. Other altcoins, such as Solana and XRP, also colored red.

Price moves come against a broader economic backdrop: gold broke through the $3,500 level for the first time, while the U.S. dollar index (DXY) hit its lowest in three years. Major U.S. stock indices like the S&P 500 and the Nasdaq 100 also slid further.

In these turbulent times, more investors are speculating on a lasting decoupling of Bitcoin from the U.S. tech sector. Instead, the crypto asset could evolve into a kind of ‘Safe Haven’ during geopolitical and macroeconomic uncertainty.

Analysts at crypto trading firm QCP Capital say there could be a tipping point. “Was the Bitcoin-and-gold rally a holiday-season noise, or does it mark a fundamental shift toward Bitcoin as a safe haven? If the latter, that would be a major change in how the traditional financial world views Bitcoin.”

Lawrence McDonald, former head of U.S. macro strategy at Société Générale, View post on X says it might be time to swap gold for Bitcoin. “Bitcoin has held up stronger than ever while the VIX stands at 30,” he wrote on X. He called Bitcoin’s resilience a “game-changer.”

The weakness in both equities and the U.S. dollar, compared with gold and Bitcoin, feeds speculation that investors fear a possible intervention by Donald Trump. There are whispers that he’s weighing firing Fed Chair Jerome Powell if he returns to the presidency.

Which way the markets will move this week hinges on new economic data and Trump’s behavior on both the political and financial stages.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.