Bitcoin emerges as unlikely safe haven in tariff-fueled crisis
Despite sharp declines in equities, gold, and oil, Bitcoin holds steady near $83,000.
The current market crisis is shaking nearly every sector—from equities to commodities to so-called safe havens. Oil prices have plummeted. Gold surged to a record midweek before dropping sharply on Friday. Even the dollar, typically a barometer of stability, weakened on Thursday before rebounding the next day.
And yet, the asset class traditionally viewed as most volatile—Bitcoin—has remained remarkably stable.
Hovering around $83,000, Bitcoin is well below its all-time high of approximately $108,000. This lower baseline may be one reason the cryptocurrency has not seen steeper declines, despite widespread losses elsewhere. In previous market selloffs, such as during the COVID-19 panic or Russia’s invasion of Ukraine, Bitcoin typically mirrored Wall Street’s red screens with even sharper falls.
But over the past week—and particularly on Thursday and Friday, when the major U.S. indices suffered heavy losses—Bitcoin showed surprising resilience. Many expected it to fall more sharply, as it has in past crises. That didn’t happen.
This time, the downturn is being driven largely by the Trump administration’s decision to impose a sweeping 10% tariff on imports from nearly every country. The move has rattled capital markets globally. Yet, Bitcoin has defied the broader trend.
One possible explanation: the administration’s openly favorable stance toward crypto. President Trump has repeatedly expressed support for Bitcoin, and recently signed an executive order to establish a federal Bitcoin reserve. He also plans to appoint crypto advocate Paul Atkins as chairman of the U.S. Securities and Exchange Commission.
Statements from influential economic leaders are also lending Bitcoin added legitimacy. Larry Fink, CEO of BlackRock—the world’s largest asset manager—recently said Bitcoin could prove to be a safer investment than the U.S. dollar. In January, Fink even projected that Bitcoin could climb to $700,000 if institutional investors increased their crypto allocations by just 2%–5%.
Newly appointed U.S. Treasury Secretary Scott Bessnet added to the momentum on Friday. “Bitcoin is becoming a store of value, gold’s has historically been a store of value,” Bessent told podcaster Tucker Carlson, adding there are “a lot of different stores of value over time.”
Still, if the selloff on Wall Street continues, Bitcoin may not remain immune. Gold, which briefly hit a record high of $3,200 an ounce midweek, tumbled Friday due to profit-taking and a sharp rebound in the dollar.
Interestingly, some crypto-related equities bucked the trend. MicroStrategy, which holds over $10 billion in Bitcoin, jumped 4% and Bitcoin-linked ETFs from BlackRock, Grayscale, and ARK rose about 2.5%. However, Coinbase—the largest U.S. crypto exchange—fell 6%, in line with the Nasdaq. Mining firms showed mixed results: Riot Platforms declined 2.2%, while Marathon Digital edged up 0.6%.
Whether Bitcoin can continue to defy gravity may depend on how deep this crisis runs—and whether investor faith in traditional assets continues to erode.
