Fears from Trumpian tariffs are driving more people towards Gold, which is seemingly overshadowing Bitcoin (BTC) as a safe-haven asset, as fears of US economic instability take a stranglehold on stock and crypto markets. Bullion prices are benefiting from trade war tensions, climbing above $2,900 an ounce, while Bitcoin fell 16% in the same period. Gold prices rallied on Tuesday, regaining ground after a slight pullback at the start of March. Spot gold was up 0.4%, reaching $2,900.78 an ounce as of 7:30 AM UTC. The rally was supported by a weakening US dollar spot index that has dropped to 103.5, a 24-hour 0.2% downtick. The surge in gold comes after President Donald Trump’s remarks in a Fox News interview on Sunday when he said that the US economy is in a “period of transition” as his administration implements new trade policies. Gold stands against BTC as profit taking resumes Gold’s more “resilient” performance against the dollar is giving investors more incentives to turn against Bitcoin, with its price falling by more than $15,400 over the past month. According to Coingecko, BTC was trading at $81,416, reflecting a 0.3% decline over the past 24 hours and a 2.8% downtick over the past week. In a March 11 X insight , market intelligence platform Santiment reported that Bitcoin’s downward trend began in mid-February when major stakeholders started cashing out profits. Between February 20 and March 8, roughly 22,702 BTC, worth nearly $1.8 billion at current prices, were transferred from private wallets to exchanges, in what they deemed as intent to sell. Comparison of Bitcoin price and accumulation wallet trend. Source: Santiment Institutional interest, part of the biggest reasons for Bitcoin’s surge following Trump’s re-election, has dwindled since he first stepped into the Oval Office. Large-scale investors who aggressively bought BTC between November and January immensely reduced their exposure last month. “Stakeholders finally began to take profit on February 19, 2025, prices immediately began to see much steeper drop-offs. It is especially interesting to see that prices have continued to plummet (falling back to a low of $78K today) even after these high capital BTC wallets began to buy back in one week ago on March 3, 2025,” Santiment contributor Brian explained. Standard Chartered analyst Suki Cooper told Bloomberg that gold may not have a solid physical market floor due to weak demand in major markets like India and China. Yet, she suggested that fresh highs could be reached this year if inflows into gold ETFs strengthen enough to offset declining physical purchases. On the flipside, economist and gold advocate Peter Schiff has found more reasons to take digs at the US government for holding BTC, owing to its red performance streak in the last 30 days. “Now that Bitcoin fell below $77K, it’s down 30% from its January record high,” Schiff posted on X. “It’s hard to see the rationale for the U.S. government holding Bitcoin as a reserve asset when it can lose that much market value so quickly. The rationale will be even harder to see when it’s down 50%.” Bitcoin weakness will likely continue Bitcoin’s current price of $81,055 remains near a critical pivot point at $80,746, a decision zone where bears could prompt investors to sell. Technical indicators on TradingView point to a possible short-term pullback rather than a full trend reversal. The cryptocurrency’s negative momentum (-9.94%) and relatively low Relative Strength Index (RSI) of 37.44, where it remains under selling pressures. Per Coinglass data , there have been over $294 million in liquidations made on BTC’s market in the last day. Market volatility since the end of February has been high, with the Bollinger Band width at 18.70%, but a support level forming at the $78,000 level could provide a temporary floor if selling pressure continues. Meanwhile, Bitcoin’s Moving Average Convergence Divergence (MACD) has crossed below the signal line, while the Average Directional Index (ADX) is at 69.9, which could mean the coin will take weeks to recover from the current downward trend. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
