On Friday, February 14, 2025, gold prices remained steady at $2,927.50 per ounce, marking a seventh consecutive weekly gain. This rise is largely due to U.S. President Donald Trump’s announcement of imposing reciprocal tariffs on countries taxing U.S. imports, raising fears
In response to these economic uncertainties, investors traditionally turn to gold as a safe-haven asset. The recent surge in gold prices reflects this behavior. For instance, major banks like JPMorgan Chase and HSBC Holdings have been transporting thousands of gold bars from London to New York to capitalize on higher prices.
However, the question arises: Is Bitcoin becoming the new safe haven? Bitcoin, often referred to as “digital gold,” has seen significant growth in recent years. Since mid-2020, Bitcoin’s value has increased by approximately 761%, reaching around $96,690 as of February 14, 2025.
Despite this impressive growth, Bitcoin’s performance during times of geopolitical tension has been inconsistent. For example, during the recent Middle East tensions, Bitcoin’s price dropped to $60,000, while gold rose to $2,665 per ounce. This suggests that investors still prefer gold over Bitcoin during periods of uncertainty.
Analysts point out that Bitcoin often behaves like a speculative asset, similar to tech stocks, rather than a traditional safe haven. Its high volatility makes it less reliable during crises. In contrast, gold has a long history as a stable store of value during turbulent times.
In conclusion, while Bitcoin’s popularity and value have surged, it has not yet replaced gold as the primary safe-haven asset. Investors continue to rely on gold to protect their wealth during economic uncertainties. Bitcoin’s role as a safe haven remains a topic of debate, with its volatility being a significant concern.
