Bitcoin Stalls as Gold Hits $3,059 on US Tariffs, Fed Policy

On March 27, Bitcoin (BTC) experienced a mixed performance as fresh US trade tariffs and macroeconomic data weighed on risk assets. The second revision of US Q4 GDP came in above the median forecast, while initial jobless claims fell short of estimates, potentially leading to more hawkish financial policy from the Federal Reserve in the form of higher interest rates.

President Donald Trump's imposition of tariffs on non-US-made cars added to existing concerns over a round of tariffs due to commence on April 2. These tariffs are expected to have significant implications, particularly for regions with substantial auto export markets to the US. Risk assets, already sensitive to tariff surprises, failed to climb, with gold emerging as the clear winner from the latest news.

Gold prices hit new all-time highs of $3,059 per ounce, repeating an existing trend of gaining while Bitcoin's price remained stagnant. This divergence highlights the complex dynamics at play in the current market environment, with gold's price increase suggesting a flight to safety and Bitcoin's stall indicating that investors may be reassessing their risk appetite.

Despite the stall in Bitcoin's price, some traders remained optimistic about its future prospects. Popular trader Titan of Crypto eyed a potential climb to $91,000 as part of an upside breakout from a “bullish pennant” on the 4-hour BTC/USD chart. This week, Titan of Crypto revealed a breakout on daily timeframes, ending a multimonth downtrend. Continuing on the latter theme, fellow trader Mikybull Crypto gave a BTC price target of $112,000.

Another popular trading account, Merlijn The Trader, queried about the breakout, asking, “Market structure is shifting – is the pump finally here?” This optimism among traders suggests that despite the current stall in Bitcoin's price, there is still potential for significant gains in the near future.

The situation underscores the ongoing debate about Bitcoin's role as a store of value and its correlation with traditional safe-haven assets. As the market continues to evolve, it will be crucial to monitor how these dynamics play out and what implications they have for Bitcoin's future price movements.