Bitcoin price nears breakout to ATH as Trump adds tariffs on gold

Bitcoin price may be on the cusp of a bullish breakout as fundamental catalysts build and key technical patterns take shape.

Bitcoin (BTC) was trading at $116,750 on Friday, August 8, up nearly $4,000 from its weekly low.

President Donald Trump adds tariffs on gold

A potential catalyst for Bitcoin’s price surge is President Donald Trump’s surprise tariff on gold bars. One-kilogram and 100-ounce bars will now be subject to reciprocal tariffs and will not receive exemptions, contrary to analyst expectations.

Gold bars imported from Switzerland will face a 39% tariff, with additional countries affected including Canada, Mexico, Peru, Australia, and South Africa. Gold prices surged to record highs following the news.

Bitcoin price could benefit from this development as it has not been tariffed. As such, some investors may opt to buy Bitcoin, which is widely seen as a digital gold than bullion itself. 

Historically, Bitcoin has outperformed gold by a wide margin. The iShares Bitcoin ETF currently holds over $85 billion in assets and may soon surpass the SPDR Gold Trust, which has over $105 billion in assets and was established in 2004.

Bitcoin price has jumped by over 1,000% in the last five years, while gold has soared by 72%. 

The other potential catalyst for Bitcoin is that Trump signed an executive order that will let retirement funds invest in cryptocurrencies. This means that the industry could see billions in inflows in the next few months. 

The Federal Reserve is also considering cutting interest rates in the coming meeting in September. Odds of rate cuts jumped after the US published weak job numbers last week.

Bitcoin price technical analysis 

The daily timeframe chart points to a possible breakout. Bitcoin has formed a slow-building bullish flag pattern, often a precursor to further gains.

BTC has consistently held above its 50-day moving average and the core support level at $112,015, its peak from May 2022.

With momentum building, Bitcoin price will likely rebound as buyers target the year-to-date high of $123,200. A breakout above that level could open the door to further gains, potentially reaching the extreme overshoot level on the Murrey Math Lines at $131,250.