Bitcoin Outperforms Gold as Tensions Around New US Tariffs Start to Swirl

Tensions around new U.S. tariffs are starting to swirl, and investors are flocking to unexpected safe havens. During April, Bitcoin (BTC) proved more attractive than both gold and top tech stocks as well as traditional refuge assets.

The market shakeup started on 2 April when U.S. President Donald Trump announced “sweeping reciprocal tariffs” on foreign goods. This was dubbed “Liberation Day,” and shook up the global financial markets. The Nasdaq Composite fell by 0.2% and the Bloomberg Dollar Index dropped about 4% in a show of investor concern over global trade.

Gold, which has long been considered the go-to asset in times like these, saw an initial surge. Its price climbed to a record high of $3,500 per ounce, before settling to a 6.1% gain by month’s end. However, even this impressive performance ended up becoming overshadowed by Bitcoin.

Since 1 April, Bitcoin has surged roughly 12%. This price move has helped it to outperform both gold and major stock indices. Initially, the cryptocurrency tracked other risk assets and dipped in response to the tariff news.

But it recovered before the month's end, reversing course and diverging from equities as long-term Treasury yields rose and policy fears mounted. Investors worried not just about tariffs, but also about the general direction of U.S. fiscal/monetary policy. There were increasing concerns about the independence of the U.S. Federal Reserve, along with its ability to manage economic turmoil. As a result, many started to rethink their safe-haven strategies.

Historically, assets like the Swiss Franc, Euro, and gold have been traditional hedges in times of uncertainty. Now, Bitcoin appears to be joining that list and is standing as a viable option for investors seeking shelter from both public and private sector risks.

The numbers show that Bitcoin is indeed leading the charge. April alone saw investors pour approximately $2.9 billion into U.S.-listed Bitcoin spot ETFs. During March, there was an opposite trend to February as these ETFs faced $811 million in net redemptions, opposite to their $3.6 billion net inflows during February.

The renewed interest in Bitcoin ETFs shows a growing institutional appetite for crypto exposure. It also reinforces the belief that Bitcoin can act as a buffer against financial risks, which gold has traditionally done.