Gold’s rally sparks debate over Bitcoin’s safe-haven status

As gold prices surged to a record $3,117 per ounce, fueled by trade war fears and aggressive central bank purchases, questions arose about Bitcoin’s role as digital gold.

Analysts suggest the rise in gold could signal increased interest in Bitcoin (CRYPTO:BTC), but opinions remain divided on whether Bitcoin can fully replace gold as a safe-haven asset.

Goldman Sachs recently raised its year-end forecast for gold prices to $3,250-$3,520, citing strong demand from Asian central banks and robust ETF inflows.

Gold’s year-to-date gain of 22% contrasts sharply with Bitcoin’s 23% decline during the same period.

Bitcoin dropped from its January peak of nearly $109,000 to under $83,000 by the end of March, highlighting its volatility amid macroeconomic uncertainty.

Critics argue that Bitcoin’s price movements align more closely with risk assets like equities rather than traditional safe havens like gold.

“Bitcoin is moving with equities, an example of its role as a macro-sensitive asset rather than a pure hedge,” noted Mena Theodorou, co-founder of Coinstash.

This volatility raises doubts about Bitcoin’s reliability during crises.

However, Bitcoin proponents maintain that its digital gold status remains intact despite recent challenges.

“Bitcoin is punching above its weight as a younger asset class. Whether you hold it as a hedge or for market uncertainty, it offers more than gold can,” emphasised Rena Shah, COO of Trust Machines, highlighting Bitcoin's unique advantages over gold.

Other experts suggest that renewed interest in gold could ultimately benefit Bitcoin.

Ben Caselin of VALR pointed to the possibility of countries adding Bitcoin to their treasuries, calling it “a precursor to an explosion in Bitcoin acquisition.”

Mithil Thakore of Velar added that both assets respond to inflation and distrust in fiat systems, reinforcing their complementary roles.

While gold remains a cornerstone of stability due to its historical reliability during crises, Bitcoin’s technological advancements and institutional adoption continue to strengthen its narrative as a modern store of value.

“Bitcoin’s finite supply and decentralised network anchor its value proposition,” noted Luke Xie of Satlayer.

At the time of reporting, the Bitcoin (BTC) price was $83,539.18.