Gold Hits Record High as Trump’s Tariff Bomb Fuels Bitcoin Volatility

▲ Trump, Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC) and gold are fiercely debating their positions as stores of value in the digital age at the center of U.S. economic policy. The tariff policies and pro-cryptocurrency stance of the Donald Trump administration are increasing market volatility.

According to crypto-focused media outlet BeInCrypto on Feb. 17 (local time), as tariff tensions between the United States and the European Union have recently intensified, the price movements of Bitcoin and gold have diverged sharply. Gold, a traditional safe-haven asset, has continued its record-breaking rally, surpassing $5,000 per ounce as it absorbs geopolitical uncertainty. Meanwhile, Bitcoin—once called digital gold—has been classified as a risk asset and has struggled to avoid a downturn. This price decoupling is reigniting fundamental questions about whether Bitcoin can truly replace gold as a safe-haven asset.

The Trump administration’s America First policy has served as a strong tailwind for the gold market. As concerns over a trade war grow, investors have flocked to physical assets, increasing gold’s market capitalization by more than $10 trillion over the past year alone. In contrast, Bitcoin is down roughly 40% from its October 2025 peak of $126,000. Economist Peter Schiff noted that Bitcoin has failed to keep pace with gold’s rally, warning that the digital gold narrative faces the risk of collapse.

However, Bitcoin advocates, including Robert Kiyosaki, remain confident in its long-term advantage based on its limited supply. Kiyosaki emphasized that while gold production can increase when prices rise, Bitcoin’s supply is mathematically fixed, making it a key differentiator. Although prices are currently pressured by risk-off sentiment stemming from tariff shocks, analysts suggest that if President Trump’s plan to establish a strategic Bitcoin reserve becomes tangible, a significant portion of liquidity flowing into gold could shift toward Bitcoin.

According to data from market analytics firm Santiment, the crypto market’s sentiment index recently fell to a record low of 5, indicating an extreme fear phase. Experts suggest that such fear could, paradoxically, signal the formation of a bottom for Bitcoin. While gold acts as a buffer against geopolitical shocks, Bitcoin is viewed as a sponge absorbing global liquidity, with each asset developing distinct defensive profiles.

Ultimately, the debate between Bitcoin and gold extends beyond a simple returns game and has evolved into a strategic question of which asset the U.S. government will rely on to safeguard global economic leadership. As the Trump administration’s deregulation efforts intersect with its tariff policies, whether the two assets can coexist or if one will replace the other is expected to become a key variable shaping the reorganization of the international financial order.

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