Gold and Bitcoin surged in early Asian trading following a provocative post from former President Donald Trump on Truth Social. In his message, Trump stated, “HE WHO HAS THE GOLD MAKES THE RULES,” reigniting discussions around the link between wealth and power. The comment led to sharp gains in both assets, with gold hitting an all-time high of $3,385 and Bitcoin climbing about 3% to $87,500. This spike suggests renewed investor interest in traditional and digital safe-haven assets.
Economic Uncertainty and Political Tensions Drive Investors Toward Gold and Bitcoin Together
While Trump’s statement grabbed headlines, analysts argue that deeper drivers are behind the synchronized rally. The ongoing US-China tensions and rising economic uncertainty are encouraging investors to seek refuge in non-dollar assets. According to The Kobeissi Letter, this parallel movement in gold and Bitcoin reflects a growing sentiment that the US dollar is weakening, which could point to increasing market unease and anticipation of economic turbulence.
Gold Hits Record, Bitcoin Climbs as Trump Rhetoric Fuels Safe-Haven RushFurther stoking investor anxiety was a sharp drop in the US dollar index, which hit a three-year low. This plunge was linked to comments from National Economic Council Director Kevin Hassett, who hinted that Trump may still consider removing Federal Reserve Chair Jerome Powell. The mere suggestion of political interference in monetary policy caused a rush to dump dollars, reinforcing the perception that Trump may challenge Fed independence, which in turn is rattling financial markets.
Bitcoin Breaks Away as Signs of a Shift Toward Safe Haven Status Emerge
Bitcoin’s rise amid a falling dollar defies its historical trend, suggesting a potential shift in how the asset behaves. Normally, a weaker dollar would drag down Bitcoin alongside it, but this time, the digital asset gained sharply. Analysts view this as a possible “regime shift,” with Bitcoin showing signs of maturing into a more resilient store of value. While still early, this shift could signal Bitcoin’s growing independence from risk-on assets and its evolution beyond being just a speculative tech play.
Despite the “digital gold” label, Bitcoin’s historical correlation with gold remains weak. Franklin Templeton Digital Assets highlighted that over the past three years, Bitcoin’s correlation with gold rarely topped 0.3, while its alignment with tech stocks reached as high as 0.7. This data reinforces that Bitcoin still behaves more like a tech asset than a traditional safe haven. However, its recent divergence from tech stocks and alignment with gold amid dollar weakness may point to an ongoing identity transformation in volatile markets.