U.S. President Donald Trump pressured the dismissal of Jerome Powell, Chair of the Federal Reserve (Fed), leading to a rapid decline in the New York stock market. In contrast, the price of gold, considered a safe asset, broke its all-time high, while Bitcoin, known as 'digital gold,' also rebounded. Analysis suggests that this divergence in forecasts for gold and Bitcoin prices occurred during the ongoing tariff war with the U.S., as they are drawing attention as 'dollar risk havens.'
According to CoinMarketCap, a global cryptocurrency market tracking site, the price of Bitcoin fluctuated around $83,000 until the morning of the 22nd, before rising to $88,404 around midnight. This is the first time Bitcoin has recorded the $88,000 range since the 26th of last month.
The price of gold also surpassed $3,500 per ounce, marking an all-time high. The price of June gold futures rose to $3,504.2 per ounce during the trading session, exceeding $3,500 for the first time, which is an increase of about $100 in just one day, following a previous close above $3,400. The spot price of gold also set a new all-time high at $3,494.81 per ounce during the trading session.
The rebound in Bitcoin prices and the record-high gold prices are attributed to President Trump pressuring Jerome Powell, the Chair of the Federal Reserve, for further interest rate cuts, causing a 'Sell America' phenomenon. There's an acceleration of the 'Sell USA' trend, where U.S. stocks, bonds, and dollars are being sold as the independence of the Central Bank may be compromised, indicating that Bitcoin and gold are serving as short-term safe havens.
In fact, the New York stock market experienced a significant drop across the board. The Dow Jones Industrial Average fell by 2.48% from the previous trading day, while the S&P 500 and Nasdaq indices dropped by 2.36% and 2.55%, respectively. Notably, the dollar index, which reflects the value of the dollar against six major currencies, fell to 97.9 on the 21st (local time), recording its lowest level in three years, continuing the trend of dollar weakness.
Park Sang-hyun, a researcher at iM Securities, noted in a report on the day that 'the simultaneous strength of gold and Bitcoin reflects a movement of funds to assets that could replace the dollar.'
Bitcoin's high popularity has led it to surpass silver in market capitalization, and it was recognized as 'digital gold' only until Trump’s election. It was given this nickname due to its scarcity, as well as similarities to gold in terms of storage and convenience. However, despite fluctuations in prices caused by the U.S.-initiated tariff war, many evaluations suggest that it is gradually assuming its role as digital gold, showing relatively limited volatility compared to the past.
However, interpretations have emerged regarding whether this upward trend in Bitcoin will continue. After breaking through the $88,000 resistance level, it is analyzed that the price must be maintained for a certain period for the trend to persist. KT Stockton, founder of the technical analysis firm Fairlead Strategies, said to CNBC, 'Bitcoin must break through the major resistance zone between $88,200 and $88,800 to continue its upward trajectory.'