Bitcoin Shifts into Positive Territory for the Year, Aligning with the Digital Gold Narrative.

Bitcoin Turns Positive Year-to-Date, Strengthening Its Digital Gold Narrative

Bitcoin (BTC) has emerged from a period of decline to see a positive year-to-date (YTD) performance, trading at around $95,000. After recovering from an 18% dip, Bitcoin is now slightly up by 1.5% since the start of the year.

This turnaround has positioned Bitcoin between gold—up 24% YTD—and the Nasdaq 100, which has seen a 7% drop. As the cryptocurrency markets continue to evolve, Bitcoin’s narrative is becoming increasingly aligned with that of digital gold, overshadowing its previous comparison to riskier tech stocks.

Bitcoin’s correlation with gold has strengthened significantly, now showing a 30-day moving average of 0.70, compared to just 0.53 with the Nasdaq 100. A correlation of 1 indicates a perfect match, while -1 shows a complete inverse relationship. These figures suggest Bitcoin is moving more in line with gold as an asset class than with tech equities.

Last week, Bitcoin surged by 10%, marking its strongest performance since mid-November following the aftermath of President Trump’s election victory. This bounce has sparked renewed confidence among investors seeking a store of value amidst global economic uncertainties.

With rising tariffs and the ongoing trade war under Trump’s administration, economic concerns continue to weigh heavily on markets. A recent report from Bloomberg highlighted how U.S. tariffs on Chinese imports have reached 145%, causing shipping volumes to plummet. Additionally, major retailers like Walmart have cautioned that inflation and supply chain disruptions could drive prices higher, reminiscent of the struggles experienced during the pandemic.