Bitcoin Reaches $90K Amid Shift to Safe Haven Asset Status as U.S. Markets Waver

• Bitcoin (BTC) has surged to $90K, driven by its appeal as a ‘safe haven’ asset amidst rising tensions involving the Federal Reserve and former President Trump.

• This recent rally marks a significant decoupling from traditional U.S. equities, as investors seek refuge in crypto and gold.

• According to a COINOTAG report, Bitcoin has significantly diverged from U.S. stock movements, signaling a potential new phase for the cryptocurrency.

Bitcoin reaches $90K as a new ‘safe haven’ amidst Fed turbulence. Is this the start of a significant trend toward digital assets? Find out more.

Is Bitcoin Establishing Itself as a Safe Haven Asset?

Traditionally, Bitcoin has been viewed largely as a risk-on asset, closely mirroring the performance of U.S. equities. However, recent market developments suggest a potential paradigm shift. Bitcoin’s recent 5% increase over five trading days represents a marked shift away from U.S. stock performance, where indices like the S&P 500 and Nasdaq felt the pressure of a 5% and 6% decline, respectively.

The Shifting Correlation Between Bitcoin and U.S. Markets

Analyzing Bitcoin through the 30-day Pearson Correlation indicator reveals that the cryptocurrency was positively correlated with U.S. stocks until mid-April. The correlation benchmark illustrates how intertwined Bitcoin has been with traditional equity markets since February, indicating its reliance on macroeconomic factors. However, as of April 16, this trend appears to have changed.

Source: The Block

Market Reactions Driven by Political Tensions

As Bitcoin’s price rises, the underlying motivations appear linked to investor reactions to political events. The escalating conflict between President Donald Trump and Federal Reserve Chair Jerome Powell over interest rates has exacerbated uncertainties in the financial markets. Market analyst Tom Lee from FundStrat recently remarked, “BTC is going to catch up to gold. Its ATH was over $100K. There’s room to catch up as a non-dollar asset.” This sentiment reflects a growing belief that Bitcoin is becoming a feasible alternative to traditional investments.

Potential Impact of Trump’s Policy on Bitcoin’s Future

Despite Bitcoin’s promising decoupling from equities, Galaxy Digital’s Head of Research, Alex Thorn, suggests that its recent trend may be short-lived. He asserts that underlying pressures in the U.S. economy could re-establish Bitcoin’s correlation with equities. The ongoing volatility stemming from Trump’s threats to influence the Fed could deepen the sell-off in dollar-denominated assets, compelling investors to seek safety in Bitcoin and gold. The question remains: Will Bitcoin sustain its position as a safe haven?

The Road Ahead for Bitcoin as a Safe Haven

As Bitcoin reaches these new heights, its journey against gold may signify its evolving role in investment portfolios. In stark contrast to gold hitting a record high of $3.5K per ounce while Bitcoin has struggled, analysts speculate about the cryptocurrency’s potential to restore its dominance. BTC has already lost over 35% of its value in 2025, which raises critical questions about its resilience in turbulent markets.

Source: BTC/gold, TradingView

Conclusion

As Bitcoin undergoes a significant transformation in its market behavior, its future as a ‘safe haven’ asset remains uncertain yet intriguing. The ability to sustain its decoupling from traditional equities in the face of ongoing political and economic challenges could redefine its role in global finance. Investors should remain vigilant and informed as they navigate these evolving landscapes.