April 2 is set to be a significant day in global trade policy as US President Donald Trump prepares to implement new tariffs exceeding 20% on imports from over 25 countries, calling it “Liberation Day.” According to The Wall Street Journal, there are discussions within the administration about imposing even broader and higher tariffs beyond this initial wave, indicating continued economic uncertainty beyond April 2nd. Market reactions have been negative with the S&P 500 dropping 3.5% and the Nasdaq 100 sliding 5%, reflecting investor anxiety. In contrast, gold prices surged to a record high above $3,150 per ounce, and the yield on the 10-year Treasury dropped to 4.2%. This shift towards safe-haven assets like bonds and gold is a classic sign of a risk-off environment that often precedes economic contraction. Amidst this volatility, Bitcoin (BTC) saw a 6% drop, highlighting its evolving role as a reserve asset but not yet a reliable hedge. Investors are turning to yield-bearing and historically stable assets amidst macroeconomic and geopolitical instability, leading to increased demand for US government bonds and gold. Gold funds have attracted over $12 billion in net inflows over the past two months, marking a significant capital surge into the asset. The economy’s precarious state is further evidenced by a decline in US consumer sentiment, with only 37.4% of Americans expecting stock prices to rise over the next year. The transition of Bitcoin into a reserve asset is underway, with growing institutional adoption and corporate treasury diversification. The future adoption of Bitcoin by corporations and sovereign entities could reduce volatility and increase its utility as a hedge. While Bitcoin’s safe haven status remains aspirational, ongoing trends suggest a potential shift in its role in the financial landscape.