Americas Crypto Daybook: Economic Uncertainty Shifts Investor Focus from Bitcoin to Gold

By Francisco Rodrigues (all times ET unless specified otherwise) The announcement of 'reciprocal tariffs' by President Donald Trump earlier this month drove the economic trade policy uncertainty index to an all-time high, prompting investors to shy away from risk assets, including bitcoin and other cryptocurrencies. Federal Reserve Chairman Jerome Powell further fueled the flames late Wednesday, stating that the central bank anticipates rising unemployment alongside a slowing economy and potential inflation increase, as 'some part of those tariffs come to be paid by the public.' His comments had a negative impact on risk assets, with the Nasdaq falling 1.17% and the S&P 500 dropping 2.24% before the closing bell. Nonetheless, bitcoin has seen a gain of over 1% in the last 24 hours, while the CoinDesk 20 (CD20) index, which captures the broader market, rose by 1.8%, despite crypto being viewed more as a gauge of risk than a safe haven. According to Michael Brown, an analyst at Pepperstone, the demand for 'assets that provide shelter from political incoherence and trade uncertainty' is likely to continue growing, as reported by The Telegraph. Although bitcoin has outperformed the stock market, with a 1% gain over the past month compared to the Nasdaq's near 8% decline, institutional investors are increasingly turning to gold, the tried-and-tested safe haven. The precious metal has seen an 11% increase over the last month and a 27% rise this year, reaching around $3,340 per troy ounce. The Global Fund Manager Survey by Bank of America reveals that 49% of fund managers view 'long gold' as Wall Street's most crowded trade, with 42% forecasting it to be the best-performing asset of the year. UBS analysts noted in a report that the 'case for adding gold allocations has become more compelling than ever in this environment of escalating tariff uncertainty, weaker growth, higher inflation, geopolitical risks, and diversification away from US assets and the US$,' as reported by Investopedia. Gold fund flows have reached $80 billion so far this year, while data from SoSoValue shows that spot bitcoin ETFs saw $5.25 billion in net inflows in January, followed by net outflows since the uncertainty began. This month, over $900 million has been withdrawn from these funds, following $3.56 billion and $767 billion in net outflows in February and March, respectively. Remain vigilant! Key Events to Watch Upcoming Conferences Token Talk By Shaurya Malwa Derivatives Positioning Market Trends Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Fund Flows Chart of the Day While You Were Sleeping In the Ether