After setting record highs over the past two days, Bitcoin retreated on Tuesday, even as its analog form extended its recent surge to top $4,000 for the first time ever, but analysts who spoke with Decrypt remain upbeat about the digital coin.  

Bitcoin was recently trading at $122,071, down 3.1% from its record high of $126,080 a day earlier, according to crypto data provider CoinGecko.

Despite the pullback, analysts told Decrypt that the digital coin still has room to rise—with gold—as investors look to alternative assets as hedges against a potential U.S. economic slump and accompanying drop in the value of the U.S. dollar.

“As more investors opt for moving their wealth to assets that will preserve their value over time, we anticipate BTC will continue to benefit given its strong narrative as a borderless store-of-value asset immune from the fiscal irresponsibility of governments,” Gerry O’Shea, head of global market insights at Hashdex Asset Management, wrote in a note shared with Decrypt. 

He added that the leading cryptocurrency could break past $140,000 by year-end as investors look to participate in the so-called debasement trade, a reference to acquiring assets that can protect them against weakening currencies

Concerns about its status of the dollar, which has served as the backbone of the global economy since World War II, have mushroomed amid the often chaotic economic policies of the Trump administration, including the president’s pursuit of high tariffs against favored trading partners. Those penalties have already shown signs of raising costs.

Meanwhile, the yen and euro have also suffered amid economic headwinds in Japan and European Union countries. 

Against this backdrop, Pepperstone research strategist Dilin Wu told Decrypt that Bitcoin and gold still could keep moving higher. 

“I believe the debasement trade is far from over and could continue for at least the next six to eighteen months (around mid-term election),” she said. 

“The core drivers—rising U.S. fiscal deficits, elevated debt levels, falling real interest rates, and accommodative policy—remain unchanged,” adding that Bitcoin is now being seen as a “digital safe haven” instead of a speculative asset. 

“Institutional inflows and rising ETF holdings further underscore that the market increasingly views Bitcoin as a hedge against currency debasement,” Wu continued. 

Last week, Bitcoin investment products, including U.S. exchange-traded funds, generated their largest net inflows ever. 

Bitcoin’s recent upswing has marked a return to its status as a safe haven asset after periods when it has correlated to more volatile tech stocks. But the asset has become more attractive to investors fretful about growing macroeconomic uncertainty, experts have told Decrypt.