The crypto market is bleeding red while gold quietly shines. Since Donald Trump’s inauguration on January 20, 2025, Bitcoin price has plunged from $106,394 to $83,888 by March 4, 2025—a 21% drop—erasing nearly $1.2 trillion from the total crypto market cap, now at $2.5 trillion from $3.7 trillion, per crypto analyst Symbiote on X.
Meanwhile, gold has climbed from $2,708 to $2,916 per ounce, up 7.7%, reinforcing its safe-haven status. This tale of two assets—Bitcoin stumbling, gold standing firm—reveals a market rethinking what counts as a hedge amid economic uncertainty.
Bitcoin Price Downward Spiral
Bitcoin price slide has been steep. On January 20, 2025, it traded at $106,394, with a market cap of about $2.11 trillion, based on a 19.8 million coin supply.
By March 4, 2025, it’s down to $83,888, a 21% loss, per TradingView. The broader crypto market mirrors this, dropping $1.2 trillion, as Symbiote noted.
Bitcoin ETF assets under management fell from $120 billion to $100 billion, a $20 billion decline, per Coinglass data. DeFi’s total locked value also shrank from $128.7 billion to $93.2 billion, down $35.5 billion, per DefiLlama, contributing to the hefty $1.2 billion slump in crypto market cap.
Gold, by contrast, has gained ground. On January 20, 2025, it was $2,708 per ounce. By March 4, 2025, it hit $2,916, up 7.7%, per TradingView.
What’s Behind the Flip?
Is Bitcoin’s hedge status slipping? In 2024, it tracked the Nasdaq 100 and S&P 500 88% of the time, per Symbiote’s analysis.
Since January 2025, that correlation has fallen to 40%. This drop signals higher volatility and weakens Bitcoin’s case as a hedge.
Trade war fears play a part too. A Bank of America survey, reported by Pensions & Investments on March 4, 2025, found 42% of respondents now view trade wars as the top risk for assets in 2025, up from 30% in January. Liquidity is flowing back to the U.S. dollar, pressuring crypto markets further. These factors have hit Bitcoin hard.
Industry Voices Weigh In
Analysts offer varied takes. Symbiote said on X, “The market’s drop since Trump took office is odd, even with his pro-crypto stance.”
Coinbase CEO Brian Armstrong posted on X that, “Bitcoin could be America’s financial lifeline amid soaring debt.”
Long time Bitcoin critic Peter Schiff said on X that, “I get the Bitcoin reserve idea, but gold’s better—I don’t buy it.” These views frame the debate as Bitcoin’s role shifts.
Crypto’s $1.2 trillion slump since January 20, 2025, has hit Bitcoin hard, down 21% to $83,888, while gold rises 7.7% to $2,916 per ounce.
Bitcoin ETFs lost $20 billion, and DeFi shed $35.5 billion in value. Trade war fears and a 40% stock correlation signal Bitcoin’s hedge days may be over. Gold, steady as ever, holds its ground. Experts like Armstrong see a crypto future, but for now, the market favors the old reliable.
