Gold surges to a record high, driven by geopolitical instability, while Bitcoin declines, mirroring US tech stock performance.
Gold's 15.51% year-to-date growth reinforces its status as a reliable store of value, contrasting with Bitcoin's recent 14.4% monthly drop.
Bitcoin's current behavior raises questions about its "digital gold" label.
Gold prices have just hit a new all-time high of $3,047, continuing a strong rally that has seen the market grow by 15.51% since the start of 2025. Meanwhile, the U.S. stock market is struggling, making gold an even more attractive safe-haven asset.
But while gold is soaring, Bitcoin—often called “digital gold”—is telling a very different story. Over the past month, BTC has dropped by 14.4%, moving in the same downward direction as tech stocks rather than holding strong like gold. This has raised a big question: Is Bitcoin really the safe asset its supporters claim it to be?
Let’s dive into what’s driving these dramatic moves.
Markets React to Rising Geopolitical Tensions
Recent global tensions have added to market uncertainty. Israel has resumed attacks in Gaza, breaking a ceasefire agreement.
The U.S. stock market reacted immediately. Yesterday, the Nasdaq Composite dropped from $17,659.06 to $17,504.12, while the Nasdaq 100 fell from $19,654.99 to $19,483.36. The S&P 500 also declined from $5,654.65 to $5,614.65.
Bitcoin followed the same trend, falling from $83,999.56 to $82,715.85.
Unlike stocks and Bitcoin, gold moved in the opposite direction. Spot prices rose from $3,000.268 to $3,033.446, reaching a peak of $3,047 today.
This trend reinforces gold’s reputation as a dependable asset during uncertain times.
Bitcoin’s Behavior Is Shifting
During the 2023 banking crisis, Bitcoin mirrored gold’s movements, acting as a strong store of value. However, that pattern has changed. Now, Bitcoin seems to follow tech stocks more closely than gold, making it less predictable as a safe-haven asset.
ETF analyst Eric Balchunas points out that Bitcoin is still young and needs time to mature before it can compete with gold as a reliable investment. He also acknowledges that, for now, Bitcoin behaves more like a tech stock than a commodity.
Trump’s Crypto Policies: Support or Setback?
U.S. President Donald Trump
Donald Trump
Donald J. Trump is a US-based business tycoon, pro-crypto politician, and 47th (present) President of the United States. He comprehends the significance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto politician.
Once doubtful about Bitcoin's dominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his pool. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.
Quick Facts
Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Famous For Business, Politics
Donald Trump - Career Highlights & Events
2016 – Elected as the 45th President of the United States from the Republican Party. 2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments 2019 – Slammed crypto king Bitcoin on X, calls it "not money". 2025 – A gala party was hosted by him for the top 220 Trump meme coin holders. President has introduced several policies to boost the cryptocurrency industry, particularly Bitcoin. These include:
- Creating a special crypto task force under the U.S. SEC to establish clear regulations.
- Issuing an executive order to develop a strategic cryptocurrency reserve.
However, Trump’s aggressive tariff policies have negatively impacted the U.S. economy, and the crypto market, including Bitcoin, has felt the effects.
Gold and Bitcoin are currently moving in opposite directions. Gold continues to rise as a safe-haven asset, while Bitcoin struggles like tech stocks.
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FAQs
Gold prices surged due to geopolitical tensions, economic uncertainty, and expectations of Fed rate cuts, making it a strong store of value
Bitcoin once correlated with gold but now follows tech stocks. Analysts say it needs time to prove itself as a reliable store of value
Bitcoin has higher growth potential but is volatile. Gold remains stable amid crises. Experts predict both will have strong but different roles