As geopolitical tensions rise in the Middle East, traditional safe-haven assets like gold are surging—but Bitcoin continues to behave like a risk asset, closely tracking U.S. equities rather than acting as digital gold.
Gold Nears All-Time High Amid Escalating Conflict
The price of gold reached $3,450 per ounce on Monday, just shy of its all-time high of $3,500 recorded in April. The recent surge is fueled by:
- Military conflict in the Middle East after Israel’s June 13 missile strike on Iran
- Global inflation concerns
- Uncertainty in interest rate direction
“Should additional data or comments made by economic officials indicate wider concern over inflation or interest rate policy, this price could very easily tip into new, record territory.”
Gold has risen over 30% since the beginning of 2025, becoming the clear choice for investors seeking safety.
Bitcoin Lags Behind as Risk Sentiment Dominates
In contrast, Bitcoin (BTC) has gained just 13% year-to-date, trading at $106,675, about 5.3% below its all-time high of $111,800 reached on May 22. Despite its growth, analysts argue that Bitcoin is not acting like a safe haven.
“Bitcoin still trades more as a risk asset akin to U.S. equities rather than as a safe haven like gold.”
Bitcoin’s short-term correlation with U.S. equity futures, which rebounded on Monday, suggests that it may continue to rise if risk sentiment holds, with support levels at $95,000–$100,000 seen as critical.
Oil and Gold Take the Lead in the Short Term
Analysts expect oil and gold to outperform Bitcoin in the immediate future due to safe-haven demand. The “digital gold” narrative for BTC is fading, with short-term liquidity and volatility driving its price.
“Bitcoin’s correlation to equities shows traders are treating it more like a tech stock than a long-term store of value.”
Eyes on the Fed: Could Bitcoin Regain Momentum?
Markets now turn to the Federal Reserve’s policy meeting scheduled for Wednesday. The CME FedWatch Tool forecasts a 96.7% chance of no rate change, holding steady at 4.25%–4.50%.
“If risk sentiment shifts and investors seek alternatives to traditional assets, Bitcoin could regain momentum in the coming weeks.”
Conclusion: Bitcoin Is Still a Risk-On Asset—for Now
While gold climbs on fear and uncertainty, Bitcoin remains tethered to equity market trends. Its path forward may depend heavily on macroeconomic data, central bank policies, and a shift in investor sentiment toward alternative stores of value.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.