Bitcoin has underperformed gold as geopolitical tensions rise, challenging its status as "digital gold." While gold prices surged 8.6% to near $5,000, Bitcoin fell 6.6% amid market volatility driven by Trump's tariff threats and Arctic tensions. Research from NYDIG highlights Bitcoin's role as a "cash machine" during crises, as investors liquidate it for quick cash, undermining its safe-haven appeal.
NYDIG's Greg Cipolaro notes that Bitcoin's high liquidity and 24/7 trading make it the first asset sold in panic, contrasting with gold's role as a stable hedge. Central banks continue to accumulate gold, while long-term Bitcoin holders are selling, adding to price pressure. The current market views gold as a hedge against short-term risks, while Bitcoin is seen as a long-term hedge against systemic issues.
Bitcoin Lags Behind Gold Amid Geopolitical Tensions
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