On March 28, 2025, the crypto market suffered a severe setback. The Bitcoin price fell below the psychologically important $86,000 mark, and Ethereum (ETH) also recorded a decline of over 5% to a price of $1,910.
The negative sentiment also affected other well-known cryptocurrencies. XRP is down 4.9% today, while Dogecoin’s price has fallen by over 7% compared to the previous day.
Global tensions cause uncertainty
The significant price decline appears to be primarily caused by escalating global trade conflicts – particularly around the United States. These geopolitical tensions are increasing uncertainty in the financial markets, leading to greater volatility and investor caution. This is usually a bad sign for risky asset classes such as cryptocurrencies. In uncertain times, investors prefer safe havens, increasing the selling pressure on digital assets.
Bitcoin Lags While Gold Reaches New Records
The crypto market has been in troubled waters for some time. While the price of gold is set to reach new record highs in 2025, Bitcoin is lagging behind – as are the US stock markets. Although Bitcoin is often referred to as “digital gold,” the market currently doesn’t seem to confirm this role.
Gold is traditionally considered a safe haven in times of economic uncertainty. When geopolitical tensions increase – as they are currently – investors typically seek refuge in the precious metal. This is also reflected in the rising gold prices this year.
If Bitcoin is truly to play the same role as gold, the price of the digital currency would have to follow a similar path. In reality, however, we see the opposite: While gold is rising, Bitcoin is falling. So, digital gold still has to prove itself for now.
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