Diverging Markets: Why Crypto & Gold Prices Moved Differently Ahead of Liberation Day

The cryptocurrency market has faced a downturn this month, continuing a downward trend begun in the fourth quarter of last year. Bitcoin (BTC) and Ethereum (ETH) prices have both fallen significantly, with Bitcoin dropping from its all-time high of $109,300 to around $82,000, and Ethereum falling from $4,100 in November to $1,800. Other altcoins like Solana (SOL), Cardano (ADA), and Polkadot (DOT) have also experienced double-digit drops from their highs in 2023. Meanwhile, the U.S. stock market has entered a correction period, as evidenced by its decline on the Nasdaq 100 index and other major indices like the Russell 2000, S&P 500, and Dow Jones. Conversely, gold prices have continued to rise this year, reaching an all-time high of $3,120 after a five-week rally. Gold is up over 20% in 2023, with major gold ETFs experiencing substantial inflows. Investors are turning to gold as a safe haven asset amid the economic uncertainty surrounding upcoming tariffs on Liberation Day.