Bitcoin ($BTC) has long been pitched to investors as digital gold, a decentralized hedge against government policy and inflation. However, the last few weeks have tested that narrative. As headlines regarding new White House tariff regimes and Supreme Court rulings circulate, Bitcoin has not acted like a safe haven. Instead, it has tumbled below the psychologically significant $65,000 mark, trading like a high-beta risk asset that is hypersensitive to global trade uncertainty.
When political instability rises, Wall Street often shifts into risk-off mode. Capital flees speculative assets in favor of stability. Currently, the correlation between cryptocurrency prices and U.S. trade stability is uncomfortably high. Investors are de-risking, leaving Bitcoin exposed to the whims of macroeconomic policy.
