Trump's gold tariffs accelerate Bitcoin's rise to record highs
A potent mix of macroeconomic shifts, institutional inflows, and policy reforms is propelling Bitcoin to the forefront of global finance, redefining its role as 'digital gold.'
Early Monday, Bitcoin jumped more than 3.3 per cent to $122,150, according to TradingView, inching closer to its all-time high of $123,000 set earlier this summer. The rally followed Trump's decision to impose a 39 per cent tariff on imported gold — a move that disrupted bullion markets and sparked a flight of capital into digital assets immune to border taxes, storage limitations, and sudden regulatory changes.
The gold tariff shock came alongside Trump's announcement of a 90-day extension on the pause for tariffs against Chinese goods, delaying a previous August 12 deadline. The reprieve briefly boosted risk sentiment in broader markets, but for Bitcoin, the more decisive factor was the blow to gold's appeal as a crisis hedge.
Analysts say the shift is clear. 'For years, gold has held the mantle of crisis hedge,' said Nigel Green, CEO of global financial advisory group deVere. 'But when tariffs raise the cost of a physical asset, Bitcoin's frictionless nature — immune to taxes, borders, and policy whims—becomes exponentially more compelling. Trump's gold tariffs didn't just shift investor behaviour, they turbocharged Bitcoin's evolution into digital gold.'
Institutional flows tell the story. In July alone, $14.9 billion poured into Bitcoin exchange-traded funds (ETFs) globally, with a record $12.8 billion heading into US spot funds. The scale of this investment underscores a growing conviction that Bitcoin is not just a speculative trade, but a strategic portfolio allocation in an era of political and economic volatility.
'Institutional capital doesn't move lightly,' Green noted. 'When a macro shock changes the economics of traditional havens like gold, digital alternatives suddenly look like necessities. Bitcoin is benefitting from both clarity in US policy and a growing recognition among institutions that value can—and should—exist outside the constraints of legacy systems.'
Trump's policies are also actively supporting this shift. A recent executive order now allows cryptocurrencies in 401(k) retirement plans — a potential gateway to as much as $9 trillion in retirement assets. While this development was not the sole catalyst for Monday's surge, market participants say it strengthens the narrative of Bitcoin as a legitimate, long-term store of value.
Henrik Andersson, chief investment officer at Apollo Crypto, said the breakout was 'overdue' after a month-long consolidation between $115,000 and $120,000. 'We have seen positive ETF flows, more treasury companies buying Bitcoin, and a number of positive developments coming out of the White House,' he said. 'In our view, it was just a matter of time before it would break up.'
Beyond executive action, recent bipartisan legislation — the Genius Act and the Clarity Act — has further reassured investors by cementing the regulated status of cryptocurrencies in the US. This policy stability, coupled with geopolitical tensions and gold market disruptions, is fuelling a broad-based rally across digital assets.
According to CoinMarketCap, total cryptocurrency market capitalisation rose nearly 2 per cent in the past 24 hours to $4.02 trillion, with trading volumes climbing almost 6 per cent to $176.88 billion. Ethereum, Solana, Tron, Dogecoin, and Hyperliquid gained up to 6 per cent, while smaller tokens like Pump(dot)fun, Lido DAO, and Ethena rallied between 10 and 16 per cent.
The price momentum is also attracting longer-term investors, with some rebalancing portfolios away from physical assets vulnerable to political interference. 'If gold—once untouchable—is now vulnerable to regulatory shifts, digital alternatives are not just attractive, they're increasingly inevitable,' said Green. 'Trump's tariffs have helped rewrite the hierarchy of store-of-value assets.'
Market strategists warn that the coming weeks could be pivotal. Bitcoin's ability to decisively clear the $123,000 threshold may set the tone for its next growth phase. Crypto analyst Altcoin Sherpa outlined two likely short-term scenarios: a gradual pullback to form a stronger base, or a sharp liquidity test near $120,000 influenced by Treasury movements and broader economic indicators.
All eyes are now on mid-August US inflation data, with consumer and producer price reports expected to shape the Federal Reserve's September rate decision. A rate cut—currently seen as increasingly likely—could further weaken the dollar and provide another tailwind for Bitcoin.
For now, Bitcoin's rally is being framed as more than a speculative spike. It is, in the eyes of many market participants, a structural reallocation of capital in response to the changing economics of safety and trust in the financial system.
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