Bitcoin Price Struggles as Gold Solidifies Its Status as a Better Safe-Haven Asset
The ongoing trade-related risks have led to a significant shift in the perception of safe-haven assets, with gold emerging as a more reliable option compared to Bitcoin. As a result, the Bitcoin price has struggled to gain ground, while gold has reached an all-time high.
The Bitcoin price has formed a double-top pattern on the daily chart, indicating a potential downturn. In contrast, gold has benefited from institutional and central bank purchases, resulting in a record high of $4,200 and a 60% increase this year. Meanwhile, Bitcoin’s price has risen by less than 20% this year, and the spread between the two assets is widening.
Gold’s Growing Popularity as a Safe-Haven Asset
The gap between the assets under management of the iShares Bitcoin Trust and the SPDR Gold Trust has continued to widen, with IBIT having $91 billion in AUM and the GLD ETF accumulating more than $138 billion. This divergence became clearer during the crypto market crash on Friday, when Bitcoin’s price plunged to $106,000 after Donald Trump floated 130% tariffs on Chinese goods, while gold’s rally accelerated.
Gold’s popularity can be attributed to ongoing demand from institutions, retail investors, and central banks. Central banks’ gold holdings have surpassed the U.S. dollar for the first time since 1996. However, Bitcoin’s role as a safe haven should not be ignored, with spot Bitcoin ETFs accumulating $27 billion in inflows in 2025, bringing the cumulative flows to more than $62.5 billion.
Bitcoin’s Long-Term Potential and Technical Analysis
While gold has had a role as a store of value for centuries, Bitcoin has been around for less than 17 years. Deutsche Bank has predicted that central banks will start buying Bitcoin by 2030, which will boost its value. Additionally, Bitcoin’s price has beaten gold in the long term, jumping by 861% in the last five years, while gold is up by about 105% in the same period.
The daily time frame chart shows that the Bitcoin price has crashed in the past few days, plunging below the 50-day moving average and forming a double-top pattern with a neckline at $106,978. The distance between the double-top point and the neckline is about 13.8%, measuring the same distance from the neckline gives a target of $92,115.
BTC price chart | Source: crypto.news
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