If there’s one positive takeaway from recent FUD, it’s that it’s strengthening crypto’s hedge narrative.

In the 2025 Q2 cycle, the “liberation FUD” triggered a clear risk-off move across crypto, as investors repositioned amid tightening monetary expectations driven by U.S. President Donald Trump’s tariff actions.

The result?

The XAU/BTC ratio closed the cycle up 76%, with capital clearly rotating into gold relative to Bitcoin [BTC] as investors sought safer macro hedges.

This time, the pattern hasn’t fully repeated. Even with the Middle East conflict reinforcing a similar tightening backdrop, Bitcoin inflows have stayed relatively resilient.

Notably, Japan’s recently revised crypto framework plays a key role in…