Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash. By Francisco Rodrigues | Edited by Aoyon Ashraf Jan 24, 2026, 9:00 p.m. Make us preferred on Google Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold. (Imagentle/Shutterstock) What to know : During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress. Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset. Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years. In theory, bitcoin should thrive during times of uncertainty as it’s sound money that’s censorship-resistant. In practice, it’s becoming the first thing investors sell when push comes to shove. As geopolitical tensions flared over the past week, following Trump’s threats of tariffs against NATO allies over Greenland and speculation of potential military action in the Arctic, markets pulled back, and volatility spiked. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Since Jan. 18, after Trump first threatened tariffs in his push for Greenland acquisition, bitcoin has lost 6.6% of its value, while gold has moved up 8.6% to new highs near $5,000. The reason lies in how each asset fits into portfolios during times of stress. Bitcoin’s always-on trading, deep liquidity, and instant settlement make it an easy asset to offload when investors need to raise cash quickly. Gold, despite being less accessible, tends to be held rather than sold. This makes bitcoin behave more like an “ATM” during periods of panic, undermining its reputation as digital gold, according to NYDIG’s Global Head of Research, Greg Cipolaro. “Under periods of stress and uncertainty, liquidity preference dominates, and this dynamic hurts bitcoin far more than gold,” Cipolaro wrote. “Despite being liquid for its size, bitcoin remains more volatile and reflexively sold as leverage is unwound. As a result, in risk-off environments, it is frequently used to raise cash, reduce VAR, and de-risk portfolios regardless of its long-term narrative, while gold continues to function as a true liquidity sink,” he added. Large holders aren’t helping either. Central banks have been buying gold at record levels, creating strong structural demand. Meanwhile, long-term bitcoin holders are selling according ot NYDIG’s report. Onchain data shows that vintage coins are continuing to move toward exchanges, suggesting a steady stream of selling. This “seller overhang” dampens price support. “The opposite dynamic is playing out in gold. Large holders, particularly central banks, continue to accumulate the metal,” Cipolaro added. Adding to the mismatch is how markets are pricing risk. The current turbulence is seen as episodic, driven by tariffs, policy threats, and short-term shocks. Gold has long served as a hedge for that kind of uncertainty. Bitcoin, by contrast, is better suited to longer-term concerns, like fiat debasement or sovereign debt crises. “Gold excels in moments of immediate confidence loss, war risk, and fiat debasement that does not involve a full system break,” Cipolaro added. “Bitcoin, by contrast, is better suited to hedging long-run monetary and geopolitical disorder and slow-moving trust erosion that unfolds over years, not weeks. As long as markets believe the present risks are dangerous but not yet foundational, gold remains the preferred hedge.” Read more: Here's what bitcoin bulls are saying as price remains stuck during global rally Bitcoin News Gold More For You KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market By CoinDesk Research Dec 22, 2025 Commissioned by KuCoin KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market. What to know : KuCoin recorded over $1.25 trillion in total trading volume in 2025 , equivalent to an average of roughly $114 billion per month , marking its strongest year on record. This performance translated into an all-time high share of centralised exchange volume , as KuCoin’s activity expanded faster than aggregate CEX volumes , which slowed during periods of lower market volatility. Spot and derivatives volumes were evenly split , each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line. Altcoins accounted for the majority of trading activity , reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover. Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity , indicating structurally higher user engagement rather than short-lived volume spikes. View Full Report More For You Here's what bitcoin bulls are saying as price remains stuck during global rally By Helene Braun , James Van Straten , Krisztian Sandor | Edited by Stephen Alpher 4 hours ago It's about a lot more than "zooming out." Supply overhangs and investor "muscle memory" regarding gold help explain bitcoin's poor absolute and relative performance. What to know : Bitcoin has failed so far to act as an inflation hedge or safe-haven asset, lagging badly behind gold, which has surged amid high inflation, wars, and interest rate uncertainty. Crypto advocates argue that bitcoin’s weakness reflects a temporary supply overhang, investor “muscle memory” favoring familiar precious metals and its correlation with risk assets, rather than a collapse in long-term demand. Many bitcoin proponents still see BTC as a superior long-term store of value and “digital gold,” predicting that, once traditional hard assets are overbought, capital will rotate into bitcoin, allowing it to “catch up” to gold. 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