Gold and Bitcoin Surge Amid Trump’s Bold Market Statement

Gold and Bitcoin surged in early Asian markets after Donald Trump posted a cryptic but impactful message on social media, reinforcing the symbolic link between wealth and power. This latest boost for the two assets came amid broader economic jitters and renewed global uncertainty. Trump’s post on Truth Social read: “THE GOLDEN RULE OF NEGOTIATING AND SUCCESS: HE WHO HAS THE GOLD MAKES THE RULES.” This message, which alludes to gold as a tool of influence, triggered immediate market reactions. Gold soared to a record high of $3,385, climbing nearly 2% in just 24 hours. Bitcoin, following close behind, jumped roughly 3% to reach $87,500, adding to a 4.5% gain over the previous week. Analysts Point to Broader Global Concerns While Trump’s comment added a flashpoint, market analysts suggest the underlying momentum for both assets stems from escalating US-China tensions and fears surrounding the strength of the US economy. These concerns appear to be fueling investor interest in assets traditionally seen as safe havens. The Kobeissi Letter offered a broader interpretation of the situation: “Gold has hit its 55th all-time high in 12 months, and Bitcoin is officially joining the run, now above $87,000. The narrative in both Gold and Bitcoin is aligning for the first time in years: Gold and Bitcoin are telling us that a weaker US Dollar and more uncertainty are on the way.” These synchronized movements suggest growing skepticism about the US dollar’s stability, potentially signaling a broader economic shift. Dollar Woes Amplify the Trend Monday trading saw the US dollar index plummet to a three-year low, compounding the sense of uncertainty. The decline followed remarks from National Economic Council Director Kevin Hassett, who revealed that President Trump is still exploring options to remove Fed Chair Jerome Powell. This revelation rattled markets, sparking fears that Trump may seek increased control over the Federal Reserve. Traders responded swiftly, selling off the dollar as confidence in monetary policy independence took a hit. Bitcoin Defies Its Typical Patterns Interestingly, Bitcoin’s climb during this dollar slump represents a notable deviation from past behavior. Typically, a weakening dollar sees Bitcoin decline or remain stagnant, given that both are viewed as alternative stores of value. However, this time, Bitcoin surged, with some analysts calling it a potential “regime shift.” The move suggests that Bitcoin may be evolving beyond its classification as just another risky asset, hinting at a maturing role in financial markets. Still, some remain cautious. While this divergence could indicate a new chapter for Bitcoin, analysts are not ready to conclude that the cryptocurrency has decoupled completely from other risk-sensitive investments. Gold vs. Tech: Bitcoin’s True Alignment Despite its reputation as “digital gold,” Bitcoin has historically been more closely correlated with tech stocks than with precious metals. According to Franklin Templeton Digital Assets, the correlation coefficient between Bitcoin and gold has rarely topped 0.3, indicating weak alignment. In contrast, Bitcoin’s connection with the tech sector has been far more robust. Over the past three years, its correlation with tech equities has reached as high as 0.7—suggesting that market movements in Bitcoin often mirror those in technology stocks. As uncertainty builds and safe-haven narratives evolve, investors appear to be re-evaluating where Bitcoin fits in the larger financial ecosystem.