Romain Costaseca | Afp | Getty Images
Bitcoin edged higher on Tuesday as stocks fell and gold shot to a brand new record.
The value of so-called digital gold rose as much as 2% to reclaim the $111,000 level after dropping over the weekend to a low last seen in July. Spot gold hovered around $3,500 after surpassing that level earlier within the session for the primary time ever.
The moves got here amid a sell-off in stocks and a jump in bond yields, which were triggered by concerns — which first emerged late on Friday ahead of the prolonged holiday weekend — on the legality of President Donald Trump’s global tariffs and the prospect that the U.S. can have to repay money already received.
Bitcoin reclaims $111,000 Tuesday
“Gold’s run of outperformance has been driven by rate‑cut expectations, dollar weakness, and geopolitical uncertainty, reaffirming its role as a conventional protected‑haven hedge,” Joel Kruger, market strategist at LMAX Group, told CNBC. “Bitcoin however, while also benefiting from all of those themes, has needed to contend with other drivers in Q3; namely, an enormous rotation into Ethereum, which has factored into a few of the relative weakness” against it.
Leo Zhao, investment director at MEXC Ventures, said the split “shows a market that desires each safety and yield” and that “crypto is increasingly competing with traditional safe-havens.”
While bitcoin continues to be trading below key resistance levels, investors say its market dominance could return if the Federal Reserve cuts rates of interest at its Sept. 16-17 meeting.
Meanwhile, ether, which has been the crypto market leader for much of the summer, was flat at about $4,300. It hit an all-time high on Aug. 25 near $125,000.
SOL, the token tied to the Solana network, rose 1%. Last week, it hit a six-month high and has outperformed each bitcoin and ether for the past three weeks — up 11% in that period versus ether’s 2% gain and bitcoin’s 6% loss.
Several crypto stocks were within the green, including Coinbase, Galaxy, Strategy and most bitcoin miners. Stablecoin issuer Circle slid 7% and ether accumulater SharpLink fell greater than 4%.
