Is Bitcoin losing its appeal as a safe-haven asset? Amid market turbulence, gold is being chosen over Bitcoin as a safe haven by investors

Amid market turbulence, gold is being chosen over Bitcoin as a safe haven by investors, raising questions about its “digital gold” narrative.

Investors are choosing gold over Bitcoin to find a safe haven amid market turbulence,suggesting that the narrative of Bitcoin (BTC) as “digital gold” might be losing its appeal.

Amid geopolitical instability and the ongoing global trade war, which President Trump began, investors are apparently turning to the more traditional safe-haven asset—gold—over Bitcoin in the current market downturn.

According to a Thursday report from JP Morgan, global gold ETFs saw $21.1 billion in net inflows in Q1 2025.

According to Cointelegraph, while Bitcoin ETFs briefly surpassed gold ETFs in terms of trading volume in late 2024, its advantage soon disappeared.

Recently, the gold price also hit a new all-time high of $3,660 per ounce.

Meanwhile, Bitcoin is coping with three consecutive months of ETF outflows. Binance Futures saw many large negative net flows, indicating multiple outflow instances since January and signaling reduced speculative trading activity as traders potentially close positions or decrease exposure.

According to the report, Trump’s election initially spurred optimism in the crypto market, with many investors having high expectations for both Bitcoin and the broader crypto market.

However, the administration’s policies, including rising tariffs and the trade war with China, concerns over a global economic downturn, and a declining U.S. dollar have pushed investors toward the time-tested security of gold.

According to data from the World Gold Council (WGC), central banks' gold reserves saw a seven-quarter increase in the first quarter of 2025, indicating persistent demand for the precious metal.

According to the report, “suggesting that the ‘digital gold’ narrative for Bitcoin might be losing some appeal.”

Earlier this month, JPMorgan analysts also said that “Bitcoin’s volatility and correlation with equities raise questions over its ‘digital gold' narrative,” while gold is seeing stronger demand.

Despite the outflows from Bitcoin ETFs and Binance Futures, the macroeconomic environment is quickly evolving.

According to the report, less volatility could help restore Bitcoin’s safe-haven appeal. It remains to be seen how macro factors like monetary policy or ETF flows will shape Bitcoin’s path in the coming months.