Safe Havens: Why Gold Outperforms Bitcoin In Times Of Crisis

As often, Donald Trump is fanning the flames and finance is igniting. His explosive statement about a possible U.S. occupation of Gaza has sown chaos, pushing investors to seek refuge. And like an old reflex, gold has been favored while Bitcoin, supposed to play the same role as a safe haven, struggles to convince. A look back at this battle between tradition and modernity.

Bitcoin vs gold: the safe haven match falls short

Since the beginning of the year, gold has taken its flight, showing a spectacular increase of 9% and breaking records by flirting with 2,882 dollars an ounce. In contrast, Bitcoin, this rebel of the crypto market, has only progressed by 3% and remains 10% below its annual peak.

In short, in the arena of safe-haven assets, gold deals a blow to its digital rival.

🚨BREAKING: Golds highest weekly close ever. Again. pic.twitter.com/cH5235CZIk

— Northstar (@NorthstarCharts) February 7, 2025

Why this gap? On one hand, Trump’s explosive statement on Gaza has electrified the markets, reinforcing the traditional rush to gold. On the other hand, Bitcoin suffers from its status as an asset still considered too volatile.

According to Aoifinn Devitt, investment advisor at Moneta Group:

“Bitcoin can be a bulwark against fiat currencies, but the strong demand for dollars diminishes its current appeal.”

Translation: in times of storm, it is better to have a proven buoy than an experimental canoe.

The numbers speak for themselves:

• Gold: +9% since January, historical record at $2,882;
• Bitcoin price: only +3%, still 10% below its annual peak;
• Record demand from central banks for gold;
• Crypto market volatility still perceived as a hindrance.

And yet, some diehards still believe. The arrival of Bitcoin ETFs could well reduce volatility and attract massive funds to BTC. But for now, gold remains king.

The price of gold on track for new heights

If Bitcoin is struggling, gold, on the other hand, thrives on economic uncertainties. Investors, anxious about trade tensions and geopolitical risks, are rushing to the yellow metal. Veteran market analyst Adrian Day from Adrian Day Asset Management goes even further: he anticipates an explosion of the gold price to $4,000 in the next year. Just that.

Gold price’s breakout year: $4k coming in the next 12 months? Adrian Day

Gold’s historic run is gaining momentum, and investors are taking notice. Spot gold hit multiple new record highs and surged past $2,880 per ounce this week, inching closer to the critical $3,000 threshold.… pic.twitter.com/mH50yZU689

— Kitco NEWS (@KitcoNewsNOW) February 7, 2025

Accumulation strategies also vary according to economic powers. In the United States, there is a rush to buy in bulk and urgently, even if it means driving up prices and emptying allies’ coffers. China, more discreet, accumulates precious metal through diverted channels, mining locally and encouraging its population to do the same.

The goal is clear: secure their wealth away from the dollar.

With record demand from central banks and a growing distrust of traditional currencies, gold seems destined for a bright future. As for Bitcoin, it still has a long way to go to compete.

Ironically, while traditional investors favor gold, the ultra-wealthy seem to be turning away from the yellow metal. According to Michael Sonnenfeld, founder of Tiger21, his members have placed nearly $6 billion in Bitcoin. So, between the hands of some, even volatility can become a luxury.