Bitcoin rises as stock markets fall, positioning itself alongside gold as a safe-haven asset amid global tensions - IcoHolder.

On Monday, as the S&P 500 plummeted over 3%, Bitcoin (BTC) offered a surprising contrast, ending the day up 2.7%. Meanwhile, gold continued its parabolic rise, prompting investors to wonder if these two assets are positioning themselves as the safe-havens they were originally designed to be.

The U.S. stock market endured a tumultuous day, with an estimated $1.5 trillion wiped from public American companies. This sell-off came amid escalating tensions in the ongoing trade war between the U.S. and China. President Trump’s tariff strategy has proven to be a significant point of contention, with China standing firm in opposition, further unsettling global markets. The declines were not limited to just the S&P 500; both the Dow Jones and Nasdaq also suffered sharp losses, adding to the market’s volatility.

Beyond the trade tensions, the heated public battle between President Trump and Federal Reserve Chairman Jerome Powell has further soured investor sentiment. Trump has repeatedly criticized Powell for not lowering interest rates, calling him a "major loser" in a recent social media post. The rift between the President and the Fed has raised concerns about the potential loss of the central bank’s independence. This, combined with growing unease over the Fed's influence on U.S. banks, has left markets nervous about future monetary policies.

Amid this chaos, Bitcoin has emerged as a potential safe haven, achieving a higher high on its short-term chart. The bulls were able to hold the $87,000 support level, pushing the price up to the $88,600 resistance. This recent upward movement signals a possible reversal of the downward trend that had plagued Bitcoin since its peak at $109,000. However, with the Stochastic RSI indicators showing signs of being overbought, some experts anticipate a potential pullback, either returning the price to the $87,000 level or testing lower support at $85,000.

On the daily chart, Bitcoin is facing resistance at its 200-day simple moving average, a critical trend-change level. The price’s struggle at this point suggests a potential corrective impulse before attempting another break to higher levels. The RSI and Stochastic RSI indicators are both showing signs of a possible retracement, indicating that Bitcoin might need to retest this trendline before pushing higher.

With traditional markets faltering, Bitcoin's resilience in the face of adversity has caught the attention of many investors. Alongside Bitcoin, gold's continued ascent also reinforces the idea of these assets becoming key players in global finance as safe-havens during times of uncertainty. As the financial landscape remains volatile, the question on many minds is whether Bitcoin and gold are truly becoming the secure alternatives they were always intended to be.