Bitcoin (BTC) Jumps 16% This Year, Emerging as 'Digital Gold' Amid U.S.-China Trade War

Despite rising global tensions from the trade war, gold stands strong, recently hitting a record high of $3200 per ounce and delivering massive returns to investors.

U.S. tariffs on China have now hit 145%, putting a strain on global markets and weakening the U.S. dollar, according to CryptoQuant Verified Author Alex Adler Jr.

This move has also sparked interest in Bitcoin (BTC) as a hedge against economic uncertainty, Adler adds.

U.S. Tariffs on China Now at 145%

Analyst Alex Adler says the latest price jump comes after the U.S. government announced a hefty 125% tariff on Chinese imports, pushing the total to 145%.

Although the administration also revealed a 90-day reprieve from tariff increases for most other nations, the primary focus on China has set the stage for broader market unrest.

Moreover, this move has heightened investor concerns about the economic repercussions and sparked interest in Bitcoin as a hedge against uncertainty amid a weak U.S. dollar.

Gold Is Surging

Gold prices have surged past the $3,200 per ounce mark, setting a new peak as a weakening U.S. dollar and escalating trade tensions between the U.S. and China drove up demand for the precious metal.

The world's largest economy announced an additional 125% tariff on Chinese imports, raising the total to 145%.

However, the administration also put a 90-day pause on tariff hikes for most other countries.

Gold, often viewed as a hedge against inflation, is a top choice for investors during market turmoil. Since the start of the year, its price has increased by over 20%, largely driven by foreign central banks making large purchases.

With the dollar declining and worries about the trade war escalating, the demand for the precious metal has soared.

Axel AdlerJr, an analyst at CryptoQuant, suggests that if the trade war intensifies, we can expect further escalation in gold prices.

Bitcoin Is Gaining Jr

Meanwhile, Bitcoin, often referred to as “digital gold,” is also showing gains. Over the past year, BTC has risen by 16%, demonstrating resilience despite market shifts.

Now, as the U.S. government imposes a 145% tariff on Chinese goods and the U.S. dollar weakens, there's a strong shift in investor preference towards alternative assets.

At the moment, Bitcoin is showing a slight increase, with its price trading around $81,910, still recovering from its recent drop from the $109k ATH.