Crypto Market Fluctuations: Is Bitcoin Really Digital Gold?

Recently, U.S. President Trump has once again introduced tariff policies, which have a significant impact on the global trade landscape. This decision has not only affected traditional financial markets but also brought notable volatility to the crypto market.

Looking back at history, Trump implemented a series of tariff policies during his term from 2017 to 2020. At that time, the Dow Jones Industrial Average fell by 500 points in response. In April 2025, Trump escalated the tariff policies again, with an impact scope and intensity greater than before. All three major U.S. stock indexes plummeted, with the Nasdaq, Dow Jones, and S&P 500 indices suffering heavy losses.

The crypto market also did not escape unscathed. The price of Bitcoin briefly fell to a low of 74,500 USDT. Data shows that within 24 hours of the tariff policy coming into effect, the crypto market experienced a widespread decline, with mainstream crypto assets generally dropping by 3%-10%, resulting in a total market capitalization evaporation of about $300 billion.

However, after Trump announced a 90-day tariff suspension on 75 countries on April 10, the market began to warm up. Bitcoin prices returned to the 80,000 USDT level, and most crypto tokens showed an upward trend. Nevertheless, market sentiment remains in a state of extreme fear, with some analysts suggesting that Trump's actions may raise suspicions of market manipulation.

This series of events has raised questions about Bitcoin's "digital gold" safe-haven properties. By comparing the price trends of Bitcoin and gold, it can be observed that Bitcoin exhibits higher volatility, while its correlation with the three major US stock indices is increasing. This suggests that Bitcoin may resemble a high-risk asset more than a traditional safe-haven tool.

Professor Lin Chen from the University of Hong Kong pointed out that since the launch of the Bitcoin spot ETF, with the participation of traditional financial institutions, Bitcoin has increasingly resembled a high Beta asset incorporated into the global capital allocation system. Its price volatility has become significantly influenced by factors such as U.S. Treasury yields, the U.S. dollar index, and macroeconomic policy expectations.

This phenomenon has sparked a rethinking of the pricing logic of crypto assets. If Bitcoin cannot function as a safe haven at critical moments and even behaves similarly to tech stocks in the face of systemic risks, then is it really digital gold, or is it just another high-volatility asset?

Nonetheless, historical experience shows that similar tariff policies often drive the global trade mechanism towards greater maturity and rationality. Trump's tariff policy this time is more like a bargaining chip rather than a substantial impact. In addition, considering the huge debt and fiscal deficit issues that the United States is about to face, this tariff action may be a means to bring a new round of capital inflow to the United States.

For participants in the crypto market, the meaning of long-termism has changed. It is no longer just about simply holding Bitcoin, but requires a higher level of understanding to identify and discover projects with solid fundamentals. What truly stands the test of time are those structural assets and on-chain application networks that continue to exist and be used after each narrative collapse.

The essence of long-termism is not an obsession with coin prices, but an understanding and participation in the evolution of industry structures. What is truly worth investing in are those projects that are iterating protocols, promoting implementation, and attempting to solve real-world problems with blockchain. Instead of focusing on short-term price fluctuations, we should understand and support those Web3 projects that are committed to building a new order.