As the 2025 trade war rages on, the demand for gold continues to scale new heights. On 22 April 2025, gold hit a record price of $3,500 per ounce against the backdrop of tariff threats between the US and China.

This record price underscores gold’s status as a classic safe-haven asset for decades until today. By contrast, its would-be challenger, Bitcoin, emerged in 2009 as a volatile speculative asset.

Many have started calling it ‘digital gold,’ arguing it can protect against inflation and currency debasement. But reality is more complicated, according to analysts. For one, Bitcoin often moves like a tech stock, soaring in bull markets but dropping hard when things turn south.

So, how far is the truth in the analyst’s consensus?

This article will compare gold and Bitcoin to see if the latter qualifies as a safe-haven asset. We’ll cover the comparison from various vantage points, like supply, volatility, actual behaviour in economic crises, and more.

1. Comparing Gold And Bitcoin

a. Supply And Scarcity

Gold

Gold’s supply is constrained by physical limits, which are geological rarity, expensive extraction processes, and the slow pace of discoveries. These factors make gold naturally scarce and resistant to rapid increases in supply.

Bitcoin

Bitcoin’s scarcity, in contrast, is enforced by code. Only 21 million bitcoins will exist, with mining rewards halving roughly every four years. Unlike gold, Bitcoin’s supply cap is algorithmically predetermined, independent of economic or physical constraints.

While gold is rare because of nature, Bitcoin is rare by design. That makes both ‘anti-inflation’ assets. Unlike fiat currencies, they can’t just be printed endlessly by governments.

b. Inflation Hedging

Gold

Gold has a proven history as an inflation hedge, preserving real value through prolonged periods of economic turmoil, wars, and monetary expansion. Its reputation is grounded in centuries of data and investor trust.

Bitcoin

Bitcoin’s fixed supply has led some to argue that it can resist inflation. However, Bitcoin’s track record is short and largely theoretical in this context. While it shares gold’s anti-inflation narrative, it lacks the historical proof that gold offers.

As Julius Baer Group highlights, gold consistently serves as a hedge during market corrections, unlike Bitcoin, whose resilience in crises remains uncertain.

c. Value Preservation

Gold

Gold has reliably held its value during market stress, often rising when equities fall. Its role as a portfolio diversifier is well established, with small allocations helping cushion drawdowns during economic downturns.

Bitcoin

Although Bitcoin has delivered significant long-term gains, it has also suffered major crashes. It tends to rise in optimistic phases and collapse during periods of fear. While it may add diversification, it does so with high volatility and uncertain performance in crises. As a result, it is more of a speculative asset than a wealth preserver.

d. Volatility And Market Behaviour

Gold

Gold’s price movements are relatively stable, with daily changes typically within a narrow range. This low volatility contributes to its safe-haven status and predictability in uncertain times.

Bitcoin

Bitcoin, by contrast, remains extremely volatile. Daily price swings of several percentage points are common. While both assets saw reduced volatility during calmer periods such as April 2025, Bitcoin’s baseline volatility remains far higher, making it a less stable store of value.

e. Relationship With Tech Stocks And Risk-On Assets

Gold

Gold traditionally displays a low or negative correlation with equities. It tends to move independently or counter-cyclically, offering downside protection during stock market downturns. This divergence in correlation patterns is a key reason gold remains a cornerstone of defensive portfolios.

Bitcoin

Bitcoin often moves in tandem with risk-on assets, particularly tech stocks. Its correlation with the Nasdaq index has at times reached 0.8–0.9, suggesting it is treated by many investors as part of a broader tech-oriented portfolio.

2. How Did Gold And Bitcoin Perform In Macroeconomic Crises?

2022 Inflation Shock

In the inflation-driven stock market sell-off of 2022, gold outperformed. It declined by just 7.9%, while equities fell sharply. Bitcoin, however, dropped nearly 70%. That crash showed it was far from a ‘safe-haven’ and behaved more like a speculative asset.

2023 Banking Turmoil

The collapse of US regional banks in March 2023 triggered a wave of risk aversion. Bitcoin jumped approximately 20% as investors sought alternatives amid uncertainty. However, this rally followed swift regulatory action, which reassured markets.

Gold and safe-haven currencies also saw inflows, but the broader context suggests Bitcoin’s reaction was partly due to confidence in government intervention, not intrinsic safe-haven behaviour.

2024–2025 Tariff War

In early 2025, renewed US tariffs rattled markets. Gold surged past $3,000, eventually hitting $3,500 amid fears of a global slowdown.

Bitcoin initially sold off with equities before rebounding as sentiment recovered. While both assets rose, gold did so steadily in response to risk-off sentiment, whereas Bitcoin’s performance was more closely tied to market optimism.

3. Institutional Adoption, Regulation And Liquidity

The past two years have seen a sharp rise in institutional interest in Bitcoin. The launch of US spot Bitcoin ETFs in 2024 opened the doors for significant capital inflows. By mid-2025, ETF assets exceeded $100 billion, with BlackRock’s iShares Bitcoin Trust alone attracting $20 billion.

Major financial institutions, including Fidelity, Morgan Stanley, and JP Morgan, have integrated Bitcoin into their offerings. US pension funds have begun allocating small percentages to Bitcoin ETFs, and Coinbase has been added to the S&P 500 index. These developments signal rising credibility and liquidity.

Bitcoin’s 24/7 global trading is another advantage over gold, which is confined to regulated hours.

Yet, gold still holds greater market depth and global trust, backed by central banks and centuries of use. Regulatory developments have also favoured Bitcoin recently, with the SEC approving multiple spot ETFs and promising clearer frameworks. Still, gold enjoys more regulatory certainty and entrenched legitimacy.

Conclusion: Is Bitcoin On Par With Gold As A Safe-Haven Asset?

Bitcoin is maturing. Its fixed supply, rising adoption, and growing institutional interest give it potential as a safe-haven asset. But it’s not there yet.

Its price is still highly volatile. It moves more like a tech stock than a store of value. While it has had moments of strength during market stress, these are exceptions, not the rule.

Gold remains the more dependable option. It has centuries of proof behind it, holds up in crises, and continues to attract central banks and investors during uncertain times.

That said, Bitcoin is not without value. Think of it as a high-risk diversifier, a potential upside play, but not a safe anchor for your portfolio. It’s best used in moderation, especially for new or cautious traders.

So, is Bitcoin the new gold?

Not yet. But for those willing to accept the risk, it may be a useful addition, not a replacement.