Is Bitcoin dropping its enchantment as a safe-haven asset? Amid market turbulence, gold is being chosen over Bitcoin as a protected haven by traders, elevating questions on its “digital gold” narrative, as acknowledged by JP Morgan analysts in a report on Thursday. Whereas gold ETFs noticed large inflows, Bitcoin confronted declining curiosity, prompting a better take a look at its evolving position in unsure markets.
Gold vs Bitcoin: A Market Snapshot
In keeping with the report from JP Morgan, traders are prioritizing gold over Bitcoin to discover a protected haven amid geopolitical instability, particularly the results of the worldwide commerce struggle initiated by President Trump.
In keeping with Cointelegraph, world gold ETFs drew $21.1 billion in internet inflows in Q1 2025. In late 2024, Bitcoin ETFs briefly surpassed gold ETFs by way of buying and selling quantity, however their benefit quickly dissipated. The gold price additionally rocketed to the ATH of $3,660/ounce this week.
In the meantime, Bitcoin struggled with three consecutive months of ETF outflows. Binance Futures skilled many giant unfavorable internet flows, indicating a number of outflow situations since January and signaling diminished speculative buying and selling exercise as merchants probably shut positions or lower publicity.
Supply: Coinglass
The $BTC price has additionally fluctuated at $85,000, plummeting by over 20% in contrast with the best price of $109,000 in January, when President Trump gained the election. This distinction underscores gold’s enchantment amid financial uncertainty.
Redefining Bitcoin’s Narrative
As soon as celebrated as a contemporary equal to gold, Bitcoin’s latest price swings have forged doubt on its popularity as a safe-haven asset for the main cryptocurrency. Earlier this month, JPMorgan analysts additionally mentioned that “Bitcoin’s volatility and correlation with equities raise questions over its ‘digital gold’ narrative,” whereas gold is gaining stronger demand.
Trump’s election initially spurred optimism within the crypto market, with many expectations from traders. Nonetheless, rising tariffs and the commerce struggle with China, issues over a world financial downturn, and a declining U.S. greenback have pushed traders towards the time-tested safety of gold.
Nonetheless, Bitcoin’s future is fluid. Might much less volatility restore its safe-haven enchantment? Macro components like financial coverage or ETF flows will form its path. This shift displays altering sentiment, however Bitcoin’s long-term position stays open to reinvention.