Bitcoin Crashes to $92,000 as Gold Soars—Is the Market Losing Faith?

Bitcoin took a nosedive to $92,000 over the weekend as panic selling swept the crypto market following President Trump’s surprise tariff announcement. Meanwhile, gold surged to a record-breaking $2,800 per ounce, reinforcing its reputation as a safe-haven asset. Is Bitcoin failing as an inflation hedge, or is this just a temporary setback?

Tariffs Trigger Market Turmoil

Over the weekend, Trump’s declaration of a 25% tariff on imports from Canada and Mexico sent shockwaves through global markets. Investors rushed to safer assets, driving up the US dollar and gold, while the crypto market witnessed a brutal sell-off. Ethereum plunged 17% in just 24 hours, and Bitcoin tumbled 11% before finding some stability at $95,000 in mid-morning UK trading.

With uncertainty clouding trade policies, analysts warn that Bitcoin could dip as low as $90,000 if panic selling persists. “Investors are jittery, and sentiment is fragile,” noted Andri Fauzan Adziima, a research analyst at crypto exchange Bitrue.

Is Bitcoin a True Hedge or Just Another Risk Asset?

Despite its narrative as digital gold, Bitcoin has shown high correlation with equities in times of crisis. The latest drop—mirroring stock market instability—raises concerns about its reliability as an inflation hedge. “Bitcoin initially fell 3% after Trump’s tariff announcement, but the situation worsened after Canada and Mexico retaliated,” reported BitGalactic analysts. In just 24 hours, the total crypto market lost $400 billion, with $2.3 billion in liquidations.

Some experts argue that Bitcoin’s decline is more about macroeconomic trends than its inherent value. Shunyet Jan, Head of Institutions and Derivatives at Bybit, explained: “Tariffs drive inflation concerns, leading to prolonged high interest rates. Historically, this hurts risk assets, including Bitcoin.”

Adding to the pressure, a stronger US dollar is weighing down Bitcoin’s price. Since most crypto assets are denominated in dollars, a stronger greenback reduces their purchasing power globally. “This is a double blow for Bitcoin,” Jan added.

Long-Term Optimism Amid Short-Term Chaos

Despite the turmoil, some analysts see a silver lining. “You haven’t yet realized how bullish a prolonged trade war will be for Bitcoin,” tweeted Jeff Park, head of alpha strategies at Bitwise. The reasoning? Heightened geopolitical uncertainty and fears of currency devaluation could ultimately push investors toward Bitcoin as a hedge against fiat instability.

BitGalactic’s analysts echo this sentiment. “Short-term volatility is expected, but over time, Bitcoin’s decentralized nature and scarcity could make it an attractive store of value—especially if economic uncertainty persists.”

Gold and the Dollar: Safe-Haven Winners

As Bitcoin faltered, gold soared to $2,800 per ounce, continuing its impressive 7% gain since the start of 2025. The US dollar also strengthened, reaching near two-year highs, underscoring investors’ flight to stability.

While a stronger dollar typically dampens gold prices, the current rally suggests traders are prioritizing financial stability over traditional price relationships. “Gold’s safe-haven appeal really kicks in when there’s widespread asset risk,” explained Suki Cooper, an analyst at Standard Chartered.

Final Thoughts: Bitcoin’s Moment of Truth?

With heightened market anxiety, Bitcoin faces a critical test. If it continues behaving like a high-risk tech stock, investors may question its long-term role as digital gold. But if geopolitical and economic tensions escalate, Bitcoin could still prove its worth as an alternative financial safe haven.

As BitGalactic analysts put it: “The coming months will determine whether Bitcoin truly earns its place as a hedge—or if it remains just another speculative asset in times of crisis.”