Bitcoin Gains 13% as Investors Seek Safe Havens Amid Trade Protectionism

Bitcoin has seen a significant influx of funds as the US dollar and US Treasury bonds lose their dominance in the market. This shift is largely attributed to the implementation of trade protectionism policies, which have altered the market's risk-averse sentiment. As a result, investors are turning to gold and crypto assets as safer havens for their funds.

The price of gold has surged to a historic high of $3500 per ounce, while the Bitcoin ETF has attracted continuous inflows of funds. Bitcoin itself has experienced a cumulative increase of 13% since April, indicating a strong interest in crypto assets.

According to a Bitunix analyst, while gold remains the preferred safe haven, its price is already at a high level, necessitating a careful evaluation of allocation space. Crypto assets, on the other hand, may benefit from a reallocation of safe-haven funds. The analyst warns that if Bitcoin cannot effectively break through the $94K resistance level in the short term, it may test the $88.5K support level.

Investors are advised to stay vigilant about changes in market news, enhance their risk management capabilities, and avoid overly concentrated asset allocation. The analyst's recommendation underscores the importance of diversification and careful monitoring of market conditions in the current volatile environment.