- Bitcoin fell over 10% amid Trump’s tariff war.
- Gold hit a new all-time high while the US dollar strengthened.
- Some $400 billion was wiped from the crypto market as liquidations surged.
No sooner did President Trump announce this weekend that he will impose 25% tariffs on imports from Canada and Mexico than the crypto market tanked and investors flocked to havens such as gold and the US dollar.
Gold hit an all-time high of $2,800 an ounce, and the greenback gained about 1.3%.
Meanwhile, Bitcoin slumped to $92,000 on Monday, losing more than 11% over the weekend, before stabilising at $95,000 in mid-morning trading UK time.
And Ethereum nosedived 17% in 24 hours.
Traders in the US are girding for a major sell-off when markets open on Monday.
Until there’s more clarity on trade policies, Bitcoin could sink as low as $90,000 “if panic selling persists,” Andri Fauzan Adziima, a research analyst at crypto exchange Bitrue, told DL News.
Is Bitcoin a hedge?
Bitcoin tends to behave like a risk asset during periods of market turmoil.
The cryptocurrency initially fell 3% after Trump announced the tariffs on Friday, but selling pressure grew after Canada and Mexico announced retaliatory tariffs.
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Over the past 24 hours, the total value of the crypto market has dropped by $400 billion, and more than $2.3 billion has been liquidated from crypto traders.
Analysts say Bitcoin’s decline may be tied to its correlation with equities rather than its status as an inflation hedge.
In contrast, gold’s rally suggests investors are gravitating toward physical stores of value instead of speculative assets.
“The imposition of tariffs exacerbates inflationary concerns,” said Shunyet Jan, Head of Institutions and Derivatives at Bybit. “This translates to higher interest rates for an extended period, which historically has proven detrimental to risk assets, including cryptocurrencies.”
A stronger US dollar has also weighed on Bitcoin.
“The imposition of tariffs contributes to the strengthening of the US dollar against other currencies, which impacts crypto asset valuations,” Jan added. “As crypto assets are predominantly priced in dollars, a stronger dollar diminishes their value in other currencies.”
Some analysts remain bullish.
“You simply have not yet grasped how amazing a sustained tariff war is going to be for Bitcoin in the long run,” tweeted Jeff Park, head of alpha strategies at Bitwise.
This is because rising geopolitical tensions and fears of currency devaluation could eventually drive demand for Bitcoin as an alternative to fiat.
Gold and the dollar
Gold, meanwhile, surged to a record on Monday, hitting $2,800 per ounce as investors continued piling into haven assets.
The metal has now gained 7% since the beginning of 2025.
The US dollar, also often seen as a safe haven, strengthened to a near two-year high.
While a stronger dollar typically weighs on gold prices, the metal’s continued rise suggests traders are prioritising inflation protection and geopolitical hedges.
“There is a lot of concern over financial stability,” said Suki Cooper, an analyst at Standard Chartered. “Gold’s safe-haven appeal really kicks in when there is broad-based asset risk.”
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
