Bitcoin’s price decline of around 2.5% while gold continues to rise is a strong signal of a shift in global market sentiment. This move is not merely a spontaneous reaction to statements by Donald Trump, but part of a broader market positioning ahead of heightened risks, particularly the potential for a trade war.
In times like these, investors tend to rotate capital away from risk assets into instruments perceived as safer. This shift explains why Bitcoin is under pressure, while gold has once again become a preferred destination for capital.
1. Risk-Off Sentiment and Asset Characteristics
As uncertainty rises, markets typically enter a risk-off phase, where investors prioritize capital preservation over returns.
Bitcoin
Despite often being labeled “digital gold,” Bitcoin’s price behavior still closely resembles that of technology stocks. Its high volatility makes investors more likely to avoid it when geopolitical tensions intensify.
Bitcoin is also facing pressure from two directions at once:
- External factors such as tariff threats and escalating global tensions.
- Internal challenges within the crypto industry, particularly the stalled progress of the CLARITY Act.
This regulatory deadlock makes Bitcoin appear increasingly “complex” to institutional investors, especially at a time when markets are craving clarity and certainty.
Gold
In contrast, gold has reaffirmed its role as a classic safe haven. Its value does not depend on specific policies or legislation to remain intact. Amid fears of currency devaluation and economic slowdown, gold is viewed as a “clean” and stable asset for temporarily parking capital.
2. The “Sell America Trade” Phenomenon
Global markets are also experiencing a Sell America Trade, where investors reduce exposure to U.S.-based assets due to political risk.
Under normal circumstances, a weaker U.S. dollar could act as a positive catalyst for Bitcoin. However, in an environment of extreme fear, capital does not flow into speculative assets. Instead, it shifts toward defensive assets such as gold and silver. Investors are clearly playing defense.
EU Emergency Summit as a Key Catalyst
The next market direction will largely depend on the outcome of the EU Emergency Summit, scheduled for Thursday, January 22, 2026. This meeting will determine whether current market pressure deepens or begins to ease.
Scenario A: Escalation (Bearish for Crypto)
If the European Union announces aggressive retaliatory tariffs or forms a united front against the U.S., market fear could intensify.
- Impact: Selling pressure on Bitcoin may continue.
- Support target: The $90,000–$92,000 zone.
- Strategy: A potential leverage flush that could present a buy-the-dip opportunity.
Scenario B: Diplomacy (Bullish for Crypto)
If the EU opts for dialogue and negotiation rather than direct trade confrontation, risk-off sentiment is likely to fade.
- Impact: Appetite for risk assets may begin to recover.
- Price target: Bitcoin could bounce from the $93,000 support area.
Conclusion
Bitcoin’s weakness alongside gold’s strength highlights how markets respond to global uncertainty. In high-risk environments, investors tend to prioritize safety by reallocating funds into safe-haven assets, while riskier assets like Bitcoin face temporary pressure. This pattern is common and is more driven by short-term sentiment than by changes in long-term fundamentals.
Therefore, investors must understand the broader macro context behind price movements rather than focusing solely on daily fluctuations. By closely monitoring global policy developments and managing risk with discipline, investors can make more rational decisions and better prepare strategies for when market sentiment improves again.
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