Why hasn’t Bitcoin (BTC) become a “safe haven” like gold?

Jakarta, Pintu News – Bitcoin (BTC) is often positioned as a future-proof, crisis-proof asset. However, in market practice, Bitcoin is often the asset that is most quickly disposed of when uncertainty increases. This pattern was seen during the escalation of geopolitical tensions following Donald Trump’s threat of tariffs against NATO allies over Greenland as well as speculation of potential military activity in the Arctic region.

Price Performance Under Geopolitical Pressure

Since January 18, when the tariff discourse first surfaced as part of the Greenland acquisition effort, Bitcoin (BTC) has recorded a decline of around 6.6 percent. In the same period, gold has actually strengthened by around 8.6 percent and is approaching a new record in the range of US$5,000 or around IDR83.8 million assuming the USD/IDR exchange rate of IDR16,763. This difference in performance emphasizes the contrasting roles of the two assets in a portfolio when the market is under pressure.

Bitcoin’s 24-hour trading characteristics, high liquidity, and fast transaction settlement make it easy to convert into cash. In times of panic, this feature encourages quick sell-offs. Gold, while less liquid and not always easily accessible, tends to be retained by its owners, making it more consistent as a hedging asset.

Also Read: Silver Price Prediction 2026-2030, How will it fare in the next 5 years?

Liquidity Preferences Override Narratives

Greg Cipolaro, Global Head of Research at NYDIG, highlights that in phases of stress and uncertainty, liquidity preference becomes the dominant factor. This dynamic is structurally more detrimental to Bitcoin than gold. Despite being relatively liquid for its size, Bitcoin remains highly volatile and is often sold as market participants pay off leverage.

In a risk-averse environment, Bitcoin is often utilized to raise cash, lower value at risk (VaR), and reduce portfolio exposure. This process takes place despite Bitcoin’s long-term narrative as “digital gold”. Instead, gold serves as a stable liquidity sink, reinforcing its reputation as a hedge asset.

Different Structural Demands

Global central banks were recorded buying gold at historical levels, creating strong and sustainable structural demand. This contrasts with the dynamics in the Bitcoin market, where long-term holders have been recorded distributing, as highlighted in the NYDIG report. On-chain data shows movement of old coins towards exchanges, indicating consistent selling pressure.

This sell-side oversupply weakens Bitcoin’s price support in the short term. At the same time, gold’s accumulation by large institutions – especially central banks – strengthens its position as a more trusted asset in the face of current market uncertainty.

Conclusion

Bitcoin (BTC) is potentially relevant as a hedge against long-term risks such as structural inflation, currency depreciation or sovereign debt crises. However, for short-term risks triggered by tariffs, policy uncertainty, and temporary geopolitical shocks, gold is still the top choice. As long as the market views such risks as significant but not yet systemic, gold tends to excel as a hedging asset.

Also Read: 3 Cryptocurrencies that are Ready to Rise Again in 2026

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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. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• CoinDesk. Here’s Why Bitcoin Is Failing Its Role as a Safe Haven Versus Gold. Accessed January 26, 2026.