Bitcoin Rallies as It Follows Gold’s Safe Haven Signal Amid US Dollar Sell-Off

Bitcoin has decoupled from U.S. stocks and is now following gold’s safe haven rally, sparking renewed investor interest in the cryptocurrency. Over the last five trading days, Bitcoin (BTC) has risen by 5%, even reaching the $90K mark during early morning sessions, as U.S. equities like the S&P 500 and Nasdaq faced significant declines. This shift comes after Bitcoin had been exhibiting a strong positive correlation with U.S. stocks since February. However, starting mid-April, Bitcoin began aligning more closely with gold, indicating a reclassification as a risk-off or safe haven asset. Analysts have noted that this trend may be fueled by investor concerns regarding U.S. dollar assets amid political tensions, particularly surrounding remarks by former President Donald Trump about Federal Reserve policies. While some experts, including Tom Lee, are optimistic about Bitcoin’s potential to catch up to gold’s performance, there is also caution regarding the sustainability of this decoupling trend. The market reaction is being closely watched as investors continue to reallocate funds from traditional dollar-based assets to alternatives like Bitcoin amid growing uncertainty in U.S. financial policy.