While many believe bitcoin is a hedge against inflation and uncertainty over the long term, it trades like a risk asset in the short term — and could endure further pain this month due to uncertainty around the trade war triggered by Trump's tariffs.
"Digital assets will eventually like today's [U.S. Treasury] yield mix (higher break-evens and lower real yields) but it will take outright nominal yields to roll lower at some stage (on growth fears) to solidify that," Geoff Kendrick, an analyst at Standard Chartered, said in a note Monday. "Until then we may be in for a choppy few days where the $90,000 level in BTC is again at risk."