Gold outperforms Bitcoin amid growing economic uncertainty. While cryptocurrency prices drop alongside stocks, gold reaches new highs.
Market Reacts to Tariffs
Bitcoin and altcoins have seen a significant decline in recent days, following stock market losses after the U.S. announced new tariffs on imports from Canada and Mexico. According to KMC data, Bitcoin plunged by $10,000 in a single day, erasing previous gains.
Even expectations of a potential U.S. cryptocurrency reserve did not improve the situation. While details will be revealed at the White House summit on March 7, the market has already reacted negatively. Analysts from The Kobeissi Letter highlight that Bitcoin’s decline is linked to a global shift away from risk assets. Due to rising economic uncertainty, investors prefer gold.
Bitcoin Tests Support
Bitcoin is currently mirroring the movement of the U.S. Dollar Index (DXY) and has approached the 200-day moving average (SMA), a crucial level for sustaining growth. Trader Daan Crypto Trades noted that this support must hold to prevent further declines.
Additional analyses indicate that Bitcoin recently closed its largest-ever price gap in the futures market. A similar gap in November 2024 led to BTC falling to its current multi-month low of around $78,000. This trend suggests the potential for further weakening.
