Romain Costaseca | Afp | Getty Images
Bitcoin saw a boost on Tuesday, reclaiming the $111,000 mark as investors navigated a landscape of falling stock prices and gold’s soaring ascent to a new record high. The cryptocurrency, often dubbed “digital gold,” surged as much as 2%, recovering from a weekend dip that had briefly sent it back to levels unseen since July. Meanwhile, spot gold was trading around $3,500, extending it record run from earlier in the session.
The market’s reaction comes amid a broader sell-off in equities and a corresponding rise in bond yields. These movements are fueled by lingering concerns surrounding the legality of President Trump’s global tariffs and the potential financial repercussions for the U.S. government. Could a tariff reversal necessitate a significant repayment of already collected funds? The markets are clearly pricing in this risk.
Bitcoin reclaims $111,000 Tuesday
According to Joel Kruger, market strategist at LMAX, gold’s impressive performance is underpinned by expectations of future rate cuts, a softening dollar, and ongoing geopolitical uncertainties, all reinforcing its established role as a safe-haven asset. “Bitcoin, while also benefiting from these macro trends, has faced its own unique challenges in Q3, most notably a substantial rotation of capital into Ethereum, which has weighed on its relative strength,” Kruger noted.
MEXC Ventures’ investment director, Leo Zhao, highlighted the market divergence as a sign of investors seeking both security and returns. “Crypto increasingly competes with traditional safe-havens,” Zhao stated, underscoring the evolving perception of digital assets in portfolio allocation.
Even as Bitcoin trades below key chart resistance, analysts believe a dovish pivot from the Federal Reserve at its upcoming September meeting (16-17) could reinvigorate its market dominance. A rate cut could provide the necessary tailwind for Bitcoin to break through resistance levels.
Elsewhere in the crypto landscape, Ether was relatively stable at around $4,300, after hitting an all-time-high near $125,000, on Aug. 25. SOL, the native token of the Solana network, witnessed a 1% increase. Over the past three weeks, SOL has outperformed both Bitcoin and Ether with an +11% move. Ether is up some, while Bitcoin is down slightly.
A number of crypto-related stocks saw gains, including Coinbase, Galaxy and Strategy. However, stablecoin issuer Circle bucked the trend, shedding 7%, while ether accumulater SharpLink declined more than 4%.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/8488.html
