The post Gold Hits Record $3,200 Amid U.S.-China Trade War—Is Bitcoin the Next Safe Haven? appeared first on Coinpedia Fintech News
Despite rising global tensions from the trade war, gold stands strong, recently hitting a record high of $3,200 per ounce and delivering massive returns to investors. As a result, demand for safe-haven assets like gold is soaring.
Meanwhile, CryptoQuant Verified Author Alex Adler Jr points Bitcoin’s growing interest as “digital gold.” With a 16% gain this year, Bitcoin is emerging as another hedge against economic uncertainty.
U.S. Tariffs on China Reach 145%
Analyst Alex Adler believe that the latest price jump follows an aggressive tariff hike by the U.S. government to impose an additional 125% tariff on Chinese imports, raising the total duty to 145%.
While the administration also announced a 90-day pause on tariff hikes for most other countries, the focus on China has shaken the global markets.
Further Adler points out that this move has intensified investor fears about the economic fallout due to weakening U.S. dollar, leading to increased demand for gold as a hedge against uncertainty.
Gold Shines as a Safe-Haven Asset
Gold has historically been viewed as a hedge against inflation, making it a top choice for investors during market turmoil. Since the start of the year, its price has jumped over 20%, mainly due to strong buying from foreign central banks.
With the dollar weakening and fears of an ongoing trade war growing, the precious metal’s demand has surged. Analyst Axel AdlerJr, suggests that if the trade war escalates, gold prices could climb even higher.
Bitcoin The “Digital Gold”
While gold is making headlines, Bitcoin, often called “digital gold,” is also seeing gains. Over the past year, BTC has surged by 16%, showing strong growth despite market uncertainties.
As of now, Bitcoin is showing a slight rise, with its price trading around $81,910, though still down from its ATH of $109k. This increase suggests that investors are looking for alternative assets to hedge against economic instability along side of Gold.
