Bitcoin experienced a slight increase on Tuesday, coinciding with a decline in stock prices and a surge in gold, which reached a new all-time high. The value of the so-called digital gold surged by over 1%, successfully reclaiming the $110,000 mark after experiencing a decline over the weekend that brought it down to levels not observed since July. Spot gold maintained its position near $3,500 after breaking through that threshold earlier in the session for the first time in history.
The recent developments unfolded against a backdrop of a stock market sell-off and a surge in bond yields, sparked by concerns that first surfaced late on Friday, just before the extended holiday weekend. These worries center around the legality of President Donald Trump’s global tariffs and the potential obligation for the U.S. to repay funds already received.
Bitcoin has successfully reclaimed the $111,000 mark as of Tuesday. “Gold’s run of outperformance has been driven by rate‑cut expectations, dollar weakness, and geopolitical uncertainty, reaffirming its role as a traditional safe‑haven hedge,” Joel Kruger, market strategist at LMAX Group. “Bitcoin on the other hand, while also benefiting from all of these themes, has had to contend with other drivers in Q3; namely, a massive rotation into Ethereum, which has factored into some of the relative weakness” against it.
Leo Zhao, investment director at MEXC Ventures, remarked that the division “shows a market that wants both safety and yield” and emphasized that “crypto is increasingly competing with traditional safe-havens.” Despite bitcoin trading beneath crucial resistance levels, investors believe its market dominance may rebound if the Federal Reserve decides to lower interest rates during its meeting on September 16-17.
Meanwhile, ether, which has dominated the crypto market for much of the summer, experienced a decline of 2%, settling at approximately $4,200. On August 25, it reached an unprecedented peak close to $125,000. SOL, the token associated with the Solana network, experienced an increase of 2.8%. Last week, it reached a six-month peak, showcasing impressive performance by surpassing both bitcoin and ether over the last month — climbing 31% during that timeframe compared to ether’s 26% increase and bitcoin’s 1% decline.