The prices of Bitcoin and cryptocurrencies have been shaken by U.S. President Donald Trump’s series of tariffs, with the Federal Reserve ready to propel the bitcoin price further.
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The bitcoin price experienced a significant decline following concerns triggered by China about a potential “crisis scenario,” but has since recovered, severing its link to the stock market.
Currently, as the CEO of BlackRock suggests that bitcoin could be a “safer bet” than the U.S. dollar, Treasury Secretary Scott Bessent has announced bitcoin as an emerging “store of value,” likening it to gold.
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U.S. President Donald Trump and Treasury Secretary Scott Bessent participated in a White House bitcoin … More
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“Bitcoin is evolving into a store of value; gold has historically served this purpose,” Bessent told podcaster Tucker Carlson, mentioning that there are “various stores of value throughout history.”
Bessent’s remarks arrive as global stock markets take a nosedive following Trump’s global import tax imposition during what he termed Liberation Day, which introduced a 10% baseline import tax and higher rates for numerous countries.
“As risk assets continue to decline, investors might increasingly shift towards traditional hedges such as bonds and gold—or bitcoin, which has demonstrated remarkable resilience compared to equities in recent days,” stated David Hernandez, a crypto investment expert at 21Shares, in an email.
Gold, traditionally viewed as a safe haven asset, has appreciated around 15% this year as traders and central banks buy it to safeguard against economic and geopolitical uncertainties.
“This week’s bitcoin price movements strongly affirm its position as an emerging store of value and its potential for generating uncorrelated returns,” Hernandez expressed.
Since the initiation of Trump’s anticipated tariffs, the U.S. stock market has fallen approximately 10%.
Trump himself shared a post on social media stating: “Trump is intentionally crashing the market.”
Over the week, the bitcoin price has risen, breaking away from its recent correlation with the stock market, particularly the tech-centric Nasdaq and the so-called Magnificent 7 stocks, including Apple, Alphabet, Amazon, Microsoft, Netflix, Nvidia, and Tesla.
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Although the bitcoin price has decreased recently, it has outperformed the declining stock market.
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“In regards to the market situation, I believe it’s more about the Magnificent 7 rather than a MAGA issue,” Bessent remarked to Carlson, referring to the Trump administration’s Make America Great Again initiatives.
“The Trump tariffs have created volatility, severely impacting the U.S. equity markets, but bitcoin’s distinct response is noteworthy,” remarked Joe Burnett, market research director at Unchained, in an email.
“Recalling March 2020, bitcoin swiftly hit a low and then rebounded initially (before U.S. equities did), a trend that could be echoing today as bitcoin hasn’t registered new lows since March 11th. This resilience might signal a strategic entry opportunity for long-term investors. However, should stocks continue to decline sharply in the coming weeks, it’s reasonable to anticipate another downturn for bitcoin as well.”
