From digital asset to safe haven: Why is Bitcoin acting like gold?

Bitcoin’s price has taken a different path from U.S. stocks over the past weeks. While major indexes such as the S&P 500 and Nasdaq have experienced declines, Bitcoin has risen to its highest levels in recent months, positioning itself as a safe haven, similar to gold.

This shift comes amid rising political tensions, including a public clash between President Trump and Fed Chair Jerome Powell, as well as mounting worries over a potential tariff war. Moreover, investors sold off U.S. Treasury bonds, while the dollar hit a three-year low, reflecting growing concerns that the Fed is losing credibility and that the dollar’s global dominance may be slipping.

As traditional markets wobble, investors are seeking safer places to park their money. Gold has been the obvious winner, hitting its all-time high of nearly $3,500 per ounce, but Bitcoin is also gaining ground. It's increasingly acting like digital gold, climbing in tandem with gold’s record-breaking rally as Wall Street loses steam. 

Investors pour $1 billion into the Bitcoin ETFs in just a day

There are clear signs that both institutional and retail investors are increasingly turning to Bitcoin as a hedge, reinforcing its growing status as a legitimate safe-haven asset. U.S.-listed spot Bitcoin ETFs, for instance, experienced nearly $1 billion in net inflows on April 22. The surge in interest was also evident in spot markets, where Bitcoin’s rally was fueled by strong buying during U.S. trading hours, indicating that American investors played a key role in driving the move.

What’s keeping Bitcoin in demand?

Bitcoin’s decentralized design makes it uniquely valuable, especially in times of political turmoil. As tensions rise between President Trump and the Federal Reserve, the risks of centralized monetary control are coming into sharp focus. Bitcoin, unlike traditional currencies, isn’t subject to government interference or inflationary policies. Its scarcity offers predictability and protection against currency debasement, making it an increasingly attractive store of value, and its independence provides a haven for investors seeking stability in unstable times.

How Bitcoin’s relationship with stocks is shifting

To understand Bitcoin’s recent divergence from the stock market, it helps to revisit past confrontations between Trump and the Federal Reserve for context.

In 2018–2019, Trump repeatedly criticized Fed Chair Jerome Powell for not cutting interest rates quickly enough. While these confrontations rattled markets briefly, Bitcoin didn’t significantly diverge from stocks. For example, in August 2019, Trump’s tariff threats and Powell's criticisms led to dips in both equities and Bitcoin, while gold alone saw a safe-haven boost.

The landscape in 2025, however, is different. Bitcoin is now a far more established asset, with deeper institutional adoption and significantly larger market capitalization. The availability of U.S.-listed spot Bitcoin ETFs has also made it easier for traditional investors to rotate into Bitcoin as a hedge. As a result, Bitcoin is now much more accessible and credible, as a safe-haven asset than it was just a few years ago.

Adding to the shift, Trump’s second-term policies have been more extreme: sweeping global tariffs exceeding 100% and even floating the idea of removing the Fed chair. These are extraordinary moves that challenge trust in the traditional financial system. This time, Bitcoin seized the moment to behave differently, and it did.

Bitcoin and gold are both in sync

As market uncertainty drives gold to new highs, Bitcoin is increasingly being viewed as its digital counterpart. However, this growing correlation between Bitcoin and gold is still in its early stages of development. Whether the connection holds in the weeks ahead remains a key trend to watch. If trade tensions and monetary policy concerns persist, Bitcoin may continue to mirror gold’s movements. But if these pressures ease or the market shifts, Bitcoin’s behavior and its correlation to gold could change once again.