Bitcoin Rebounds Toward $95K, Strengthening Digital Gold Narrative

Bitcoin (BTC) has returned to positive territory for 2025, nearing the $95,000 mark after recovering from an 18% decline. As of now, BTC is up approximately 1.5% year-to-date, positioning it between gold’s impressive 24% gain and the Nasdaq 100’s more than 7% loss. This performance slightly shifts bitcoin’s perception from a leveraged tech stock toward the "digital gold" narrative.

Recent data highlights a growing correlation between bitcoin and gold. Over a 30-day moving average, bitcoin’s correlation coefficient with gold has risen to 0.70, compared to a weaker 0.53 correlation with the Nasdaq 100. A coefficient closer to 1 indicates a strong positive relationship, reinforcing the idea that bitcoin is behaving more like a safe-haven asset amid ongoing market volatility.

Bitcoin's price climbed 10% last week, marking its strongest weekly performance since mid-November, when markets rallied following President Donald Trump’s election victory. Economic uncertainty continues to play a role in the market’s dynamics. Earlier this month, the U.S. sharply raised tariffs on Chinese imports to 145%, leading to a significant decline in cargo shipments. Bloomberg reports that major retailers like Walmart are warning of potential product shortages and rising prices, echoing supply chain issues seen during the COVID-19 pandemic.

Bitcoin’s resilience and closer alignment with gold's price movements may boost its appeal as a hedge against macroeconomic instability. As trade tensions and inflation fears persist, investors appear increasingly inclined to view BTC not just as a tech-driven asset but as a modern store of value.