Bitcoin Breaks Records, Again — But Investors Still Don’t Know What to Think

Bitcoin just keeps doing what it does best—confounding expectations. After a whiplash start to 2025 that saw the cryptocurrency rocket to $109,000 in January, crash to $75,000 in April, and then bounce back to an all-time high of $112,000 on May 22, the only clear takeaway is this: nobody really knows what Bitcoin is anymore.

Is it a tech stock in disguise? A modern-day version of gold? Or just a volatile bet that’s somehow gained enough traction to shake entire markets? Depending on the week—or even the day—you’ll hear a different answer.

A $2.2 Trillion Identity Crisis

On paper, Bitcoin looks like a heavyweight. With a market cap sitting around $2.2 trillion, it’s now rubbing shoulders with Alphabet and Amazon in sheer size. That’s not a coincidence. To some investors, Bitcoin is basically a tech stock—a high-growth, high-volatility asset that thrives in a bull market and tumbles when the mood shifts.

But here’s the twist: that’s not the only way people look at it.

Others have started treating it like “digital gold,” a haven when the world feels shaky. It’s the kind of narrative that gains traction during geopolitical tension, trade wars, and—most recently—fresh tariff drama out of Washington.

That’s the puzzle investors are trying to solve. And it’s messing with their heads.

Trump, Tariffs, and Bitcoin’s Jekyll-and-Hyde Behavior

President Trump’s sudden tariff threats in April and May put this identity crisis into sharp focus. One moment, Bitcoin sank alongside tech stocks after the first tariff bombshell. The next, it was rising again as traders talked it up as a safer asset.

It was a strange few weeks. You could almost see Bitcoin morphing in real time.

On April 2, Trump announced sweeping tariffs. Bitcoin dropped, right alongside the NASDAQ.

But then something weird happened. As the dust settled, Bitcoin started rising—even while tech stocks kept bleeding. Suddenly, people were calling it a hedge. “Digital gold” was back in fashion.

Here’s the head-scratcher:

• If Bitcoin sells off with tech stocks during bad news, doesn’t that make it just another risk asset?

• But if it then rallies when markets are jittery, is it acting more like gold?

You can’t have it both ways. That kind of logic feels like a coin toss rigged to always favor Bitcoin.

The Upside — And Its Limits

Analysts are now dividing into camps.

One group still sees Bitcoin as a massive growth asset. This is the version of Bitcoin that posted triple-digit gains in 2023 and 2024. It’s sexy. It’s fast. It’s wild. It’s why people fell in love with crypto in the first place.

But then there’s the other crowd. The ones pointing to gold.

Take the April report from investment firm 21Shares titled “From Digital Asset to Safe Haven: Why Is Bitcoin Acting Like Gold?” The takeaway? Bitcoin might be maturing into something safer… and slower.

Here’s a quick reality check. If Bitcoin really is turning into a gold-like store of value, then its days of explosive returns might be numbered.

Gold, for all its reputation, hasn’t exactly made people rich lately. In fact, its best year in the last 15 was 2010, with a 27.7% return. Most years? Low double digits, maybe.

So sure, if Bitcoin is gold, maybe it doesn’t drop 40% overnight anymore. But maybe it also never doubles in six months again.

And that changes the whole investment case.

This Chart Says It All

Take a look at how Bitcoin stacks up to gold and tech stocks based on annualized returns.

Market Jitters and The $112K Speed Bump

Let’s go back to May 22. Bitcoin hits $112,000—a new all-time high. Celebratory tweets fly. Crypto influencers are chest-thumping. Then boom—President Trump drops another bombshell: tariffs on Europe might go as high as 50%.

It’s May 23 now. Bitcoin falls to $109,000, just like that.

What gives?

If it’s a tech stock, it should fall. If it’s digital gold, it should hold steady. Instead, it kind of… wobbled. Like an asset with an identity crisis. Again.

And remember, Trump has already delayed those Europe tariffs. So the rollercoaster probably isn’t done.

What Investors Are Really Betting On

At the end of the day, this debate over whether Bitcoin is a tech stock or digital gold isn’t just academic. It matters—a lot.

Because where Bitcoin goes next might depend less on crypto fundamentals and more on how people think it behaves.

It’s all about sentiment.

One investor might say: “Look, I see Bitcoin replacing gold over time. It’s more portable, harder to seize, and maybe even more inflation-resistant.”

Another says: “This is just another bubble. It’s like Tesla in 2020—great while it lasts, but overhyped.”

A third? “I’m buying because it’s fun. Don’t overthink it.”

And maybe that’s the most honest take of all.