As US stock indices hit record highs after the announcement of a freeze on Sino-American tariffs, Bitcoin and gold paradoxically dropped. What lies ahead for the leading digital asset in an unstable macroeconomic environment?
Monday was one of the most prosperous days for the American stock markets in recent times. The Dow Jones surged by over 1,000 points, reaching 42,300 points (+2.61%), while the S&P 500 and Nasdaq both advanced by 3.08% and 4.21%, respectively.
This surge follows the announcement by Donald Trump of a 90-day freeze on tariffs imposed on China. In practical terms, U.S. tariffs will drop from 145% to 30%, while Chinese tariffs on American products will be set at 10%. This “complete reset of trade relations” was praised by the U.S. President.
Paradoxically, Bitcoin (BTC), often seen as a safe-haven asset, saw its value drop by 1.43% over the last 24 hours, hitting a low of $100,700, now standing at $103,583. This decline occurred as the price of gold also dropped 3.1%, falling to $3,223.26.
This dynamic raises questions about Bitcoin’s positioning: is it now aligning more with high-risk assets than safe-haven values? Investors seem to be reclassifying digital gold into the category of assets correlated with traditional markets.
Tech giants, heavily reliant on China for trade, greatly benefited from this trade de-escalation. Amazon surged by 8.01%, Apple by 6.39%, Tesla by 6.48%, and Nvidia by 5.12%. These performances also boosted the dollar, with its index climbing by 1.59%.
This exceptional stock market day once again questions the strategic positioning of Bitcoin. The notion of an asset completely uncorrelated to markets seems in doubt, with investors potentially repositioning it in the high-risk asset category.
In this context, institutional investors would be wise to closely monitor correction or accumulation movements on Bitcoin in the coming days. With Bitcoin hovering around $100,000, every geopolitical announcement could now act as a potent bullish or bearish catalyst.
According to Vincent Ganne, a technical analyst and crypto macro strategist based in Paris, “this event confirms that Bitcoin, despite originating from the decentralized ecosystem, is increasingly integrated into the global financial system. It is becoming sensitive to macroeconomic… and political leverage.”
In essence, Bitcoin remains volatile amidst traditional market optimism. This has also shown that it can temporarily lose its safe-haven function against assets like the dollar or tech stocks depending on macroeconomic conditions.
Therefore, the geopolitical context, particularly U.S.-China relations, becomes a decisive factor in Bitcoin’s performance in the coming days.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
