Is cryptocurrency becoming the new gold?

Since President Donald Trump initiated tariffs, discussions have focused on safe havens – areas where investors safeguard their funds during times of turmoil. Typically, investors turn to U.S. debt, supported by the U.S. government’s full faith and credit. However, following the recent tariff-induced stock market decline, investors even began offloading U.S. Treasurys. Another traditional safe haven is gold, which reached a new peak on Wednesday, exceeding $3,350 per ounce. In 2025, there is also bitcoin, often touted as the future digital gold.

Bitcoin has exhibited intense reactions during stock market disruptions over the past few years. For instance, in the summer of 2022, bitcoin experienced a substantial drop as the Federal Reserve raised interest rates to combat inflation. Leigh Drogen, Chief Investment Officer at Starkiller Capital, noted that investors perceive bitcoin more as a risky tech stock than a stable store of value. However, in recent weeks, bitcoin has demonstrated lower volatility and relative strength compared to other risky assets. Prior to the significant tariffs on April 2, one bitcoin was valued at approximately $84,000, has since stabilized around that price despite a small dip.

Bitcoin advocates consider this stability as a significant milestone in its development. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, likened bitcoin’s current phase to a teenager maturing into an adult asset akin to gold. Advocates argue that due to its limited supply and inherent immutability, bitcoin should remain shielded from inflationary pressures caused by tariffs or declining faith in the U.S. dollar. Lee Reiners from Duke University, however, remains doubtful. He questions whether the argument for bitcoin’s stability due to its limited supply could apply to any asset with fixed availability, including items like Beanie Babies or baseball cards. Reiners emphasized that bitcoin’s correlation with risky tech stocks is higher than that with actual gold and cautioned against regarding crypto as a safer asset than it truly is, as this could potentially jeopardize the noncrypto economy.

Overall, the ongoing debate surrounding bitcoin’s status as a safe haven asset persists. While some believe it is on track to becoming a reliable hedge asset akin to gold, others remain skeptical, concerned about its high correlation with risky tech stocks. As bitcoin continues to demonstrate stability amidst market fluctuations and economic uncertainties, its role as a legitimate safe haven asset remains a topic of contention and examination within the financial landscape.