In 2025, the gold market reached record highs, underscoring its reliability as an asset. Meanwhile, the Bitcoin market struggles due to shifts in the global economy and geopolitical factors.
Geopolitical Tensions and Market Reaction
Recently, Israel resumed attacks in Gaza, breaching the ceasefire agreement. This caused significant market reactions: the Nasdaq Composite and the S&P 500 indices decreased, along with Bitcoin. In contrast, the gold spot price rose, reaching $3,047.
Bitcoin’s Past Correlation with Gold
During the 2023 banking crisis, Bitcoin mirrored gold market behavior as a strong store of value. Now, Bitcoin aligns more closely with the performance of US tech stocks, suggesting its immaturity as an asset compared to gold.
Trump’s Policies and Bitcoin’s Potential
US President Donald Trump has implemented initiatives to support the cryptocurrency sector. However, his aggressive tariff policies negatively impacted the economy and crypto market, casting doubt on Bitcoin’s future as 'digital gold.'
Today, gold and Bitcoin behave differently. Gold strengthens amid geopolitical uncertainty, while Bitcoin resembles tech stocks in volatility. Whether Bitcoin will become 'digital gold' remains uncertain.
