Here’s why crypto market and gold prices diverged ahead of Liberation Day

Here’s why Pi Network, Jasmy, LTC, Ethena, and altcoins are down

The crypto market has come under pressure this month, continuing a downtrend that began in the fourth quarter of last year.

Here’s why Pi Network, Jasmy, LTC, Ethena, and altcoins are down

Bitcoin dropped from an all-time high of $109,300 in January to $82,000, while Ethereum has slumped from $4,100 in November to $1,800. Other altcoins have retreated, with blue-chip names like Solana, Cardano, and Polkadot falling by double digits from their highest levels in 2024. On the other hand, gold prices have continued to shine this year. The metal has rallied for five consecutive weeks and is now at an all-time high of $3,120. It is up over 20% this year, while the largest gold ETFs like GLD and IAUM are seeing substantial inflows.

Here’s why Pi Network, Jasmy, LTC, Ethena, and altcoins are down

The ongoing surge in gold prices, coupled with the decline in stock and cryptocurrency prices, suggests that investors view gold as a superior safe-haven asset amid rising risks. Investors see the upcoming Donald Trump’s Liberation Day tariffs as a black swan event that could lead to a recession. On the positive side, a recession would likely prompt the Federal Reserve to slash interest rates and initiate quantitative easing, which could drive renewed demand for risk assets like stocks and cryptocurrencies.