Bitcoin vs Gold: Which Will Emerge as the Safe-Haven Asset?

Bitcoin vs Gold: Will Economic Uncertainty Boost Digital Gold?

Bitcoin vs Gold– The crypto market has not followed the expected path under the Trump Administration, with Bitcoin prices unexpectedly dropping from above $100,000 in early 2025 to the mid-$80,000s by March. Investors had hoped that regulatory reforms and policies like a Bitcoin Strategic Reserve would push prices higher, but the opposite trend has unfolded.

A key factor in the downturn is the growing correlation between crypto assets and traditional assets like stocks and bonds, both of which have been impacted by macroeconomic uncertainty. Concerns over tariffs, especially those imposed by the U.S., have led to fears of a global recession, pushing investors away from riskier assets like crypto. According to Marc Ostwald, Chief Economist & Global Strategist at ADM Investor Services International, “This is all about markets’ ‘risk appetite’ which continues to deteriorate.”

As the global financial system fragments, investors have increasingly turned to gold, which has seen an 18% rise year-to-date. Ostwald notes that central banks are reducing their exposure to the U.S. dollar, contributing to gold’s rise as the “safe haven” of choice. However, this could soon change, with some experts suggesting Bitcoin may soon emerge as a new form of “digital gold.”

Bitcoin: The Future of Safe-Haven Assets?

Omid Malekan, an adjunct professor at Columbia Business School, highlights that the uncertainty surrounding the future of crypto and tariffs makes it difficult to predict. “Bitcoin has found footing in some circles as ‘digital gold,'” he said, implying that Bitcoin might increasingly be seen as a safe-haven asset, similar to gold, during times of economic turmoil.

The impact of tariffs on crypto may have already been priced in, says Zach Pandl, head of research at Grayscale. As President Trump prepares to announce U.S. tariffs on April 2, the market could experience relief if the announcement is measured. “Once we get through this announcement, crypto markets can focus back on the fundamentals which are very positive,” Pandl added.

As tariffs weaken the dominance of the dollar, Bitcoin and other digital assets could benefit in the long term. Pandl is confident that Bitcoin’s role as a global monetary asset will continue to strengthen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.