On the other hand, political instability also played a role in this decisive move. President Trump’s criticism of Fed Chair Jerome Powell created fears of policy interference. His remarks pushed the US Dollar Index to a three-year low of 97.923 and spooked bond markets, with 10-year Treasury yields rising above 4.4%. These developments weakened fiat and bond stability confidence, pushing capital into Bitcoin and gold XAU). Trump’s comments about not firing Powell caused gold prices to drop sharply, but Bitcoin remained elevated at higher levels.
Furthermore, the appointment of Paul Atkins as the new SEC Chair added to the positive momentum. Atkins promised regulatory clarity for digital assets. His support for innovation and less restrictive oversight boosted optimism among crypto investors, especially around the future of ETFs and DeFi. In summary, Bitcoin’s increase is rooted in strong institutional buying, macroeconomic instability, and a shifting regulatory outlook. If these trends hold, Bitcoin could soon test new record levels.
Bitcoin vs Gold – Digital Asset Rallies as Traditional Safe Haven Pulls Back
Bitcoin and gold show diverging trends despite being considered safe-haven assets during the latest trade crisis. Amid political uncertainty and ETF inflows, Bitcoin surged above $90,000, while gold reached a high of $3,500 before correcting lower. This correction occurred as investors moved away from gold in response to easing rate cuts while they continued buying Bitcoin. This shift highlights the growing preference for digital assets over traditional hedges in volatile conditions.
Bitcoin-to-Gold Ratio Turns Bullish, Signals Strength in BTC
The weekly chart below shows that the Bitcoin-to-gold ratio turns upward after correcting from the 40 level. This turn indicates that Bitcoin is gaining strength relative to gold. It also suggests a possible investment shift toward Bitcoin, as gold has reached overbought levels. The emergence of an inverted head and shoulders pattern on the weekly chart signals that a break above 40 could trigger a strong Bitcoin rally, similar to the moves seen in 2016 and 2020.