Capital flees US, Bitcoin shoots up to $93k

Whether the Euro is really happy with its gains remains to be seen, but the trend of last week was also confirmed again at the beginning of this week. Investors are moving their money out of the United States and are actively looking for ‘safer’ places such as the Swiss franc, gold, Bitcoin and the Euro. Trump’s trade war seems to be causing an economic earthquake.

It is also striking to see that the former correlation between Bitcoin and the technology stock exchange Nasdaq is no longer valid. Bitcoin is now at a fairly stable level compared to the beginning of the year, while the Nasdaq is at a major loss. Bitcoin shot up to over $90k on Monday.

At the time of writing, the biggest digital coin trades for $93,000.

Undisputed

Gold is the undisputed winner so far of the trade war started by US President Trump. The precious metal is often seen as a safe haven during economic and political uncertainty, but what we are witnessing this time round is truly unprecedented. Since the beginning of the year, the price of gold has risen by 31%. On Tuesday, a price of $3,500 was reached.

Bitcoin is also doing increasingly well, probably strengthened by the weakness of the US dollar (which briefly stood at 1.15 against the Euro on Monday, the lowest level since 2021).

It is also very striking that Bitcoin has remained virtually unchanged since the beginning of this year with a price of $90,000, while the technology focused stock exchange Nasdaq has shown a fairly large loss of around 15% in the meantime. In previous years, the price of Bitcoin and the Nasdaq exchange traded in a very close correlation. Ever since the start of Trump’s ‘Liberation Day’ on April 2, that correlation has faded.