Gold or Bitcoin: Which is a Safe Investment Amid US-China Tensions?

Updated

April 24, 2025

Gambar Gold or Bitcoin: Which is a Safe Investment Amid US-China Tensions?

Jakarta, Pintu News – Amid rising geopolitical tensions between the United States and China, both countries appear to be strengthening their positions in strategic financial assets.

However, the approaches taken by these two countries are very different. While the United States is stepping up efforts to position itself as a global crypto leader, China has significantly increased its gold reserves, adding five tons in less than a month.

China’s Gold Strategy

BREAKING: China’s central bank increased its gold holdings by 5 tonnes in March, posting their 5th consecutive monthly purchase.

This brings total China’s gold reserves to a record 2,292 tonnes.

Chinese gold holdings now reflect 6.5% of its total official reserve assets.… pic.twitter.com/LuwiBvnirn
— The Kobeissi Letter (@KobeissiLetter) April 20, 2025

According to a recent report from The Kobeissi Letter, the accelerated accumulation of gold by the People’s Bank of China indicates a cautious stance amid global market instability. Meanwhile, gold prices have surged to $3,401 per ounce, driven by aggressive buying from institutions, especially from China. Renowned crypto-skeptical analyst Peter Schiff said that this surge in gold prices is a clear market signal that the Federal Reserve should raise interest rates.

Also Read: 7 Ways to Save Dollars (USD) for Maximum and Effective Use

Bitcoin as the New Safe Harbor?

Gold jumping above $3,400 is a clear market signal that the Fed needs to raise interest rates. Yet everyone, including Trump, is calling for the Fed to cut them. The Fed will likely ignore gold's warning and cave to the pressure to cut. That policy mistake will send gold soaring.
— Peter Schiff (@PeterSchiff) April 21, 2025

On the other hand, Bitcoin has shown impressive resilience, holding above $87,000 despite market turbulence. Recent data from Glassnode shows that more than 60 new wallets holding 1,000 BTC or more have emerged since early March, pushing the total number of such addresses to 2,100, the highest level in four months. This signals renewed confidence from large holders, even amidst changing macroeconomic pressures.

Trade War and the Battle Between Gold and Bitcoin

As global markets continue to be rocked by escalating US-China tariff tensions, investors are increasingly turning to assets they perceive as safe harbors – Gold and Bitcoin (BTC). While Bitcoin’s appeal as the modern equivalent of Gold has grown, the broader picture remains complex. Nearly $5 billion in ETF outflows seem to hint at investor hesitation, even though the asset’s price has remained stable.

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While Gold continues to shine as a traditionally safe asset, Bitcoin’s quiet momentum may signal that institutional interest in digital assets is far from dimming. These two assets, Gold and Bitcoin, continue to play an important role in global financial strategies, especially as hedging tools amid economic uncertainty and fractured diplomacy.

Also Read: 7 Ways to Get Passive Income from Crypto 2025, Simple!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.