Bitcoin experienced a significant rebound on Tuesday, climbing as much as 2% to surpass the $111,000 mark. This surge followed a weekend dip to its lowest point since July. The cryptocurrency’s rise coincided with a notable drop in the stock market and a concurrent jump in bond yields.
These market shifts were largely attributed to concerns surrounding the legality of President Trump’s global tariffs and the potential for the U.S. to repay previously received funds. This uncertainty created a flight to safety, benefiting both Bitcoin and gold.
Gold simultaneously reached a record high, trading around $3,500 per ounce after breaking through that barrier earlier in the day. Analysts attribute several factors to the upward trajectory in precious metals.
Joel Kruger, market strategist at LMAX Group, highlighted rate-cut expectations, dollar weakness, and geopolitical uncertainty as key drivers, emphasizing gold’s established role as a safe-haven asset. He contrasted this with Bitcoin’s performance, noting the impact of Ethereum’s recent dominance on Bitcoin’s relative strength.
Leo Zhao, investment director at MEXC Ventures, offered a different perspective, suggesting that the market’s demand for both safety and yield is driving increasing competition between cryptocurrencies and traditional safe havens, such as gold.
While Bitcoin remains below key resistance levels, investors remain optimistic about its potential resurgence, particularly if the Federal Reserve decides to cut interest rates at its upcoming September meeting.
The broader cryptocurrency market showed mixed signals. Ethereum, which has led the market for much of the summer, traded flat at approximately $4,300, despite hitting a record high in late August.
Solana’s SOL token performed well, rising 1% and outperforming both Bitcoin and Ethereum over the past three weeks. Similarly, several cryptocurrency stocks saw gains, including Coinbase, Galaxy Digital, Strategy, and most Bitcoin miners.
However, not all performed positively, with stablecoin issuer Circle and ether accumulator SharpLink experiencing declines of 7% and over 4%, respectively.
