Bitcoin Faces Its Moment of Truth: Can BTC Outperform Tariffs as a Safe-Haven Asset?

As global trade tensions escalate and tariffs slam traditional markets, Bitcoin’s ’digital gold’ narrative is put to the test. Will it shine—or get buried under macroeconomic pressure?

The setup: Investors fleeing tariff chaos have three options—gold, bonds, or crypto. Bitcoin’s volatility makes it a wildcard, but its censorship-resistant nature could be the ultimate hedge.

The punchline: If BTC rallies while stocks tank, it cements its safe-haven status. If it crashes alongside equities? Back to the drawing board for crypto maximalists. (And another win for goldbugs—how original.)

Bitcoin’s use case : Hype or hedge in a post-tariff world?

Since “Liberation Day” on the 2nd of April, when tariff talks first kicked off, Bitcoin has been outperforming stocks.

In fact, it powered through April’s stock sell-off and kept leading as markets bounced back, even after the tariffs were put in place.

Take the S&P 500, for example. In the week following Liberation Day, it plummeted 12%, while bitcoin only saw a minor 5% dip.

What’s even more impressive? This resilience came despite a $1 billion outflow from BTC ETFs on a weekly basis. 

Source: BGeometrics

This price action clearly cemented Bitcoin’s role as a strategic hedge. Hence, further proving its use case as a go-to ‘safe haven’ in volatile markets. 

But what happens now that those macro risks are cooling off? According to AMBCrypto, if Bitcoin keeps climbing, regardless, it might just prove that its use case goes far beyond the headlines.

In short, it’s time to see if BTC is built to last – or if it’s just riding the “hype.”

Investors adjust to market signals

As macro tailwinds shift, market repositioning is in full swing. S&P 500 futures are already up by +3% at press time, with top tech giants back in the green. 

Meanwhile, the bond market is experiencing a sell-off, as evidenced by the 10-year U.S. Treasury yield (interest on government borrowing) rising nearly 6%, reaching 4.433% bps. 

Source: Trading Economics

Risk-on capital is back in full force, and the timing couldn’t be more critical. Bitcoin is eyeing a pivotal resistance zone at $106k – a major hurdle for its bullish use case. 

The burning question: Will BTC take center stage as a hedge in this post-tariff calm? With rate cuts looking increasingly unlikely, this could be the trigger for its next move, weather up or down.

It’s crunch time for Bitcoin to prove its ‘safe-haven’ use case once and for all. 

Hence, showing the market that it’s not just a speculative play, but a legitimate hedge.