Paul Johnson Bitcoin staged a modest comeback on Tuesday, climbing back above $110,000 even as U.S. stocks stumbled and gold blasted through uncharted territory. While the world’s largest cryptocurrency showed resilience amid market turmoil, it lagged the glittering performance of gold, which surged past $3,500 for the first time in history.
Market Backdrop: Stocks Fall, Yields Spike
The market moves unfolded against a backdrop of heightened uncertainty. Concerns over the legality of President Donald Trump’s sweeping global tariffs triggered a sharp sell-off in equities and a jump in bond yields. Analysts warned that if courts rule against the tariffs, the U.S. could face the prospect of repaying billions already collected, rattling investors further.
Gold Shines, Bitcoin Holds Ground
Gold’s rally was fueled by growing expectations of Federal Reserve rate cuts, a weaker dollar, and persistent geopolitical risk. Joel Kruger, strategist at LMAX Group, said gold’s surge reaffirmed its role as the ultimate safe-haven hedge. Bitcoin, meanwhile, benefited from similar macro forces but has faced headwinds from a heavy rotation into Ethereum and other altcoins, tempering its upside momentum.
Crypto Market Dynamics: SOL Steals the Spotlight
While Bitcoin reclaimed the symbolic $110,000 mark, it remains shy of breaking key resistance levels. Ether slipped 2% to around $4,200 after peaking near $125,000 in late August. The real standout has been Solana’s SOL token, which added another 2.8% on the day. Over the past month, SOL has surged 31%, outperforming both Bitcoin’s flat performance and Ether’s 26% gain.
Investor Outlook: Waiting on the Fed
According to Leo Zhao, investment director at MEXC Ventures, the divergence between gold and crypto reflects a market ‘that wants both safety and yield.’ He noted that digital assets are increasingly competing with traditional safe havens. Looking ahead, many investors believe Bitcoin could regain dominance if the Federal Reserve delivers an interest rate cut at its September 16–17 meeting, potentially sparking a fresh leg higher for digital assets.
For now, Bitcoin remains in gold’s shadow, but with volatility surging and policy uncertainty rising, the next big move for crypto markets could be just around the corner.
