Bitcoin Stumbles on Tariffs, But Could Rise as the New Digital Gold

Bitcoin’s performance under the Trump Administration has defied investor expectations. Instead of rallying on pro-crypto policies and regulatory reform hopes like a potential Bitcoin Strategic Reserve, Bitcoin has dipped from over $100,000 earlier this year to the mid-$80,000 range in March.

The drop reflects broader market turmoil. Increasing correlation between crypto and traditional assets has weighed heavily on prices. Stocks and bonds are under pressure from macroeconomic uncertainty, especially concerns around a looming global recession fueled by new U.S. tariffs. These tariffs—targeting 15 countries including China, Canada, and Mexico—have stirred Wall Street anxiety and dampened risk appetite. As a result, investors have shifted from crypto to gold, which is up 18% year-to-date.

Marc Ostwald of ADM Investor Services notes that risk aversion and a global move away from the U.S. dollar are making gold the preferred safe haven over digital assets. However, others see potential for change. Columbia Business School professor Omid Malekan suggests bitcoin could soon mirror gold’s appeal as a hedge in uncertain times.

Grayscale’s head of research, Zach Pandl, believes the worst may be priced in. If Trump’s tariff announcement on April 2 is “tough but phased,” markets could rebound. Pandl points to strong crypto fundamentals, including major institutional moves like Circle’s IPO, as a sign of long-term strength.

He also argues tariffs could reduce dollar dominance and open space for alternative currencies like bitcoin. While short-term sentiment remains weak, Pandl is bullish on crypto’s future. “I wouldn’t have quit my Wall Street job if I didn’t think bitcoin will be the winner in the long term,” he said.