Has Bitcoin lost its appeal as a secure asset? In amid market turmoil, as JP Morgan analysts stated in a note Thursday, gold was chosen as a safe haven by investors, raising questions about its “digital gold” narrative. Although gold ETFs have seen massive inflows, Bitcoin is facing a decline in interest, prompting a closer look at its evolving role in uncertain markets.
Gold and Bitcoin: Market Snapshots
According to a report by JP Morgan, investors are prioritizing gold Bitcoin Finding a safe haven in a situation of geopolitical instability, especially the consequences of the global trade war initiated by President Trump.
according to COINTELEGRAPHthe global gold ETF attracted a net inflow of US$21.1 billion in the first quarter of 2025. At the end of 2024, Bitcoin ETF briefly surpassed gold ETFs in terms of trading volume, but its advantages quickly disappeared. Gold prices also rose $3,660 per ounce to ATH this week.
Meanwhile, Bitcoin struggled with ETF outflows for three consecutive months. Binance Futures has experienced many large negative net flows, indicating multiple instances of outflows since January, signaling reduced speculative trading activity as traders potentially approach positions or reduce exposure.
Source: Xiaodian
The price of $BTC also fluctuated at $85,000, down more than 20%, while the highest price for President Trump to win the election was $109,000. This contrast emphasizes the attractiveness of economic uncertainty.
Redefining Bitcoin’s narrative
Bitcoin has been celebrated as a modern brand recently, and recent price volatility has raised doubts about the reputation of secure assets leading cryptocurrencies. Earlier this month, JPMorgan analysts also said that “Bitcoin’s volatility and correlation with stocks have raised questions about its ‘digital gold’ narrative”, and demand for gold has increased.
Trump’s election initially sparked optimism in the crypto market, with investors having many expectations for investors. However, rising tariffs and a rising trade war with China, concerns about a global recession and a focus on a decline in the dollar have pushed investors toward time-tested gold security.
Despite this, Bitcoin’s future is still smooth. Can reducing volatility restore its safe appeal? Macroeconomic factors such as monetary policy or ETF traffic will affect their path. This shift reflects changing emotions, but Bitcoin’s long-term role remains reluctant to reshape.
