Bitcoin has experienced a significant decline following the recent announcement of new U.S. tariffs, dropping 16.7% since then. Its performance trails behind traditional safe-haven assets like gold, the S&P 500, and even the US Dollar Index. This downturn raises questions about Bitcoin’s future as a hedge against economic volatility. While it has recovered from a sharp drop earlier in the week, its performance remains below par compared to other asset classes often considered stable during market uncertainty. 13.8% decline on the S&P 500, -4.8% for the Dollar Index and -4.8% for silver, all outperforming Bitcoin. CryptoQuant suggests that Bitcoin is currently trading at levels comparable to the Nasdaq (-17.5%) and oil markets, while gold stands out as a top performer, gaining +12.9%. 190,000 BTC held by Chinese governments represent the second largest Bitcoin holdings after the US, and China continues its exploration of crypto regulations through legal and financial institutions. The decline in Bitcoin’s value has reignited debates about its role as a safe haven asset, particularly when compared to gold which offers a sense of stability. The issue is further complicated by China’s handling of seized cryptocurrency assets. Local governments in China have begun liquidating confiscated cryptocurrencies through private firms for funds amid economic slowdowns. This practice raises concerns about regulatory transparency and governance as companies such as Jiafenxiang, facilitate over $408 million worth of transactions since 2018 on behalf of regional governments in Jiangsu province. While technically legal within China’s framework, this process remains susceptible to opaque practices that lack formal oversight mechanisms. The People’s Bank of China (PBOC) has acknowledged the need for improved international regulations for cryptocurrencies in their 2024 financial stability report. This suggests a strong interest in global-level governance solutions for digital assets.