Is Bitcoin losing its appeal as a safe-haven asset? Amid market turbulence, gold is being chosen over Bitcoin as a safe haven by investors, raising questions about its “digital gold” narrative, as stated by JP Morgan analysts in a report on Thursday. While gold ETFs saw massive inflows, Bitcoin faced declining interest, prompting a closer look at its evolving role in uncertain markets.

Gold vs Bitcoin: A Market Snapshot

According to the report from JP Morgan, investors are prioritizing gold over Bitcoin to find a safe haven amid geopolitical instability, especially the consequences of the global trade war initiated by President Trump.

According to Cointelegraph, global gold ETFs drew $21.1 billion in net inflows in Q1 2025. In late 2024, Bitcoin ETFs briefly surpassed gold ETFs in terms of trading volume, but their advantage soon dissipated. The gold price also rocketed to the ATH of $3,660/ounce this week. 

Meanwhile, Bitcoin struggled with three consecutive months of ETF outflows. Binance Futures experienced many large negative net flows, indicating multiple outflow instances since January and signaling reduced speculative trading activity as traders potentially close positions or decrease exposure. 

Source: Coinglass

The $BTC price has also fluctuated at $85,000, plummeting by over 20% compared with the highest price of $109,000 in January, when President Trump won the election. This contrast underscores gold’s appeal amid economic uncertainty.

Redefining Bitcoin’s Narrative

Once celebrated as a modern equivalent to gold, Bitcoin’s recent price swings have cast doubt on its reputation as a safe-haven asset for the leading cryptocurrency. Earlier this month, JPMorgan analysts also said that “Bitcoin’s volatility and correlation with equities raise questions over its ‘digital gold’ narrative,” while gold is gaining stronger demand.

Trump’s election initially spurred optimism in the crypto market, with many expectations from investors. However, rising tariffs and the trade war with China, concerns over a global economic downturn, and a declining U.S. dollar have pushed investors toward the time-tested security of gold.

Still, Bitcoin’s future is fluid. Could less volatility restore its safe-haven appeal? Macro factors like monetary policy or ETF flows will shape its path. This shift reflects changing sentiment, but Bitcoin’s long-term role remains open to reinvention.

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