Bitcoin has underperformed gold as a safe-haven asset in recent months, despite its reputation as "digital gold," according to CryptoQuant CEO Ki Young Ju.
While gold prices have surged 11% since former U.S. President Donald Trump returned to the political spotlight in February, Bitcoin has fallen over 25% in the same period.
This divergence challenges the narrative that BTC behaves like a traditional store of value during economic uncertainty.
Market analysts had expected Bitcoin to benefit from macroeconomic instability, particularly due to escalating trade tensions under Trump’s proposed tariffs. However, instead of attracting capital fleeing equities, cryptocurrencies have faced steep corrections alongside stocks.
Ju noted that Bitcoin appears to have entered a bearish phase, with on-chain indicators suggesting 6-12 months of sideways or downward price action. He attributes this to declining liquidity and the end of the current bull cycle.
Despite short-term concerns, Ju remains optimistic about Bitcoin’s long-term potential, stating that it could eventually surpass gold’s $20 trillion marketcap
Bitcoin is often compared to gold due to its fixed supply (21 million BTC) and decentralized nature. However, its recent price action indicates that institutional and retail investors still favor traditional safe havens like gold during periods of macroeconomic stress.
CryptoQuant’s analysis suggests that Bitcoin has yet to fully establish itself as a mature hedge asset, though its long-term growth prospects remain intact.