Why Bitcoin is more and more like gold
The price movements of crypto and those of the great tech shares-both were known in the past to move relatively similarly. Not like that at Bitcoin: The largest crypto asset has increased in the past few weeks, while significant stock indices have been in value.
The current price losses of the important stock indices S&P 500 and Nasdaq Composite-the former records the 500 largest US companies, second specializing in technology companies-are due to political developments. For the potential customs war triggered by US President Trump, the publicly carried out between Trump and Fed boss Jerome Powell and the broad sale of US state bonds are also joined by investors. The consequences? The US dollar has been at its lowest value for three years and many investors are looking for safe investments. One of the obvious profiteers is gold, which scratched $ 3,500 per ounce with a new all -time high. But Bitcoin also climbs up – and leaves Wall Street behind as “digital gold”.
Weaknesses of a centralized monetary system are obvious
One reason for this performance is certainly in the obvious weakness of that system, that was once inspiration for the creation of Bitcoin: The centrally issued Fiat currencies. The current tensions between the US President and the US Federal Reserve chief press the value of the US dollars issued centrally-in contrast to Bitcoin, which is not subject to any government or authority. His edition does not follow inflationary dynamics, rather he was constructed with an inherent shortage. All of this makes him an attractive value -added preservation in politically and economically unstable times. Another factor is the different development from Bitcoin to the stock market. A look at past confrontations between Trump and the Federal Reserve also helps to understand this.
The role of Bitcoin towards shares is changing
In 2018 and 2019, Trump criticized FED chairman Powell that he did not lower the US control interest rates quickly enough. While these confrontations briefly unsettled the markets, the Bitcoin did not significantly deviate from the shares, so they were largely with them. In August 2019, for example, Trump's customs threats and Powell's criticism led to burglaries in both stocks and Bitcoin, while gold was the only safe harbor to experience an upswing.
However, the situation is completely different in 2025: Bitcoin not only has a significantly larger market capitalization, but is also far more accepted by institutional investors. The availability of listed Bitcoin products-both in the USA and Europe-has made it much easier for traditional investors to invest in Bitcoin. As a result, the cryptocurrency is much more accessible and credible today than a safe harbor than it was the case a few years ago. Bitcoin even benefits from politically unstable situations that have become even more extreme in Trump's second term: With his customs policy and rhetoric, the Fed's chief's deposition is questioned in the traditional financial system in the USA. Bitcoin's reaction clearly shows the development of it.
How Bitcoin and Gold behave
While market uncertainty drives gold to new highs, Bitcoin is increasingly regarded as its digital counterpart. However, this growing correlation between Bitcoin and gold is still in the early stages of development. Whether it will remain in the coming weeks is an important trend that needs to be observed. If the trade voltages and monetary concerns last, Bitcoin could still reflect the movements of gold. However, if this pressure decreases or the market changes, the behavior of Bitcoin and its correlation to gold could change again.
Investors are currently very convinced: On April 22, 2025 alone, US investors put around one billion US dollars in the US Bitcoin ETF-and Bitcoin's strongest price rally also took place during US stock exchange times.
