Despite Gold reaching an all-time high and shining brilliantly in April, by the end of the month, it was not difficult to discover an even more outstanding asset: $Bitcoin (BTC.CC)$ 。

Data shows that Bitcoin's increase so far this month has reached twice that of Gold, rekindling the debate about whether this largest crypto can serve as a safe haven during times of market turmoil (such as disputes arising from full tariffs imposed by the USA).

On April 2, USA President Trump announced the decision to impose reciprocal tariffs (which he called 'Liberation Day'), causing shockwaves in the global market. Since the day before the announcement, the Nasdaq Composite Index has cumulatively dropped by 0.2%, and the USD has plummeted by over 4%.Safe haven AssetsAs a traditional asset, Gold once soared to a historic high of $3,500 per ounce. Although it has since retraced some of its gains, it has still recorded an increase of about 6.1% so far this month.

Perhaps the most surprising is Bitcoin: this largest Global Crypto has risen about 12% since April 1, many crypto enthusiasts believe that against the backdrop of increasing concerns about USA fiscal policy and institutional stability, it is becoming an alternative hedging tool.

Interestingly, the initial market reaction to tariffs had caused Bitcoin to decline in sync with risk Assets, plummeting along with US Stocks. However, Cryptos quickly diverged from the trends of other risk assets, experiencing a significant rebound as long-term treasury yields rose and investors sought a safe haven amid escalating policy risks.

Growing concerns over the independence of the Federal Reserve and the credibility of USA economic policy have also driven Capital Trend towards Swiss francs, euros, Gold, and finally further inflows into Bitcoin.

Data shows that from April to date, investors have injected about 2.9 billion USD into Bitcoin spot ETF listed in the USA, marking a significant reversal compared to the net outflows of 0.811 billion USD and 3.6 billion USD recorded in March and February respectively.

Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, pointed out in a recent report that a "strategic asset reallocation away from USA Assets" is expected to drive the next wave of Bitcoin's rise.

He believes that Bitcoin has become a tool for hedging risks in the financial system and emphasizes that its “decentralized characteristics” may make this hedge “more effective than Gold.”

Kendrick stated that as investors face multiple risks ranging from the collapse of Silicon Valley Bank in 2023 to government interventions threatening the Federal Reserve, the defensive attributes of Bitcoin are becoming increasingly important.

However, FalconX’s Head of Research David Lawant currently reminds investors not to overinterpret Bitcoin's recent divergence from risk Assets, noting that it is based on just a few trading days. He pointed out that “decoupling” means the collapse of correlation, but Bitcoin's 30-day correlation with major Stock Indexes is still around 0.6, far from low levels.

However, Lawant also mentioned that currently, what may be more worthy of attention is Bitcoin's unusually low beta value under recent market pressure (beta value is used to quantify the volatility of individual investment instruments relative to the entire market), which indicates that investors have begun to view it as a more mature long-term asset.

Editor/Somer