Bitcoin Surges Amid Economic Turmoil
Bitcoin and cryptocurrency prices have faced turbulence due to U.S. President Donald Trump’s ongoing tariffs, yet Bitcoin is showing resilience. The Federal Reserve's potential moves could further boost Bitcoin prices.
After a significant drop linked to concerns from China about a potential "crisis scenario," Bitcoin has rebounded, breaking away from its previous ties to the stock market. Larry Fink, CEO of BlackRock, recently remarked that Bitcoin might be a "safer bet" than the U.S. dollar. Meanwhile, Treasury Secretary Scott Bessent has identified Bitcoin as an emerging "store of value," drawing parallels to gold.
Bessent stated, “Bitcoin is becoming a store of value, gold’s has historically been a store of value,” during an interview with podcaster Tucker Carlson, emphasizing the variety of stores of value available over time.
As stock markets worldwide plummet following Trump's declaration of Liberation Day, which introduced a universal 10% import tax and higher tariffs on various products, Bitcoin's price has seen a week-long increase. In contrast, gold, a traditional safe haven, has risen approximately 15% this year as investors seek protection from economic uncertainties.
The U.S. stock market has declined nearly 10% since the onset of Trump's global tariff strategy, which was more aggressive than traders anticipated. Trump himself commented on social media, suggesting, “Trump is purposely crashing the market.”
Despite the stock market's downturn, Bitcoin has performed well, distancing itself from the technology-heavy Nasdaq, which includes major companies like Apple, Alphabet, Amazon, Microsoft, Netflix, Nvidia, and Tesla.
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