Bitcoin drops below $80K amid tariff tensions as gold surges

Global markets faced turbulence on Thursday following President Donald Trump’s announcement of steep tariffs on European alcohol imports, leading to investor unease.

The S&P 500 declined by 1.5%, while the Nasdaq Composite fell 2.2%, reflecting growing concerns over economic instability.

Bitcoin (CRYPTO:BTC), often considered a volatile asset, dropped below $80,000, marking a sharp decline from its January peak of $109,071. 

The cryptocurrency briefly touched an intraday low of $79,910 as fears over trade disputes and economic uncertainty weighed on investor sentiment.

Analysts noted that Bitcoin’s sensitivity to policy shocks underscores its limitations as a safe-haven investment during crises.

Meanwhile, gold surged to a record $2,985 per troy ounce, gaining 13.65% year-to-date, reinforcing its role as a preferred refuge amid geopolitical and financial volatility.

Trump’s tariff measures target European wines and alcoholic products with a proposed 200% duty unless the European Union removes its 50% tariff on American whiskey.

The move escalates transatlantic trade tensions and raises concerns about broader economic repercussions.

Trump described the EU as "hostile and abusive" in its trade practices, further amplifying market jitters.

The contrasting performance of Bitcoin and gold has reignited discussions about Bitcoin’s reliability during economic downturns.

While gold continues to solidify its status as a safe-haven asset, Bitcoin’s role remains uncertain.

“Bitcoin has never truly been a safe-haven asset—only an aspirational one,” Uldis Teraudklans of Paybis remarked.  

As markets brace for further volatility, investors are shifting capital toward stability-focused assets like gold, reflecting broader scepticism about cryptocurrencies' ability to hedge against financial uncertainty effectively.

After briefly dipping below $80,000, the cryptocurrency rebounded but has struggled to regain momentum amid uncertainty surrounding global trade policies.

At the time of reporting, the Bitcoin (BTC) price was $81,564.20.