Gold’s price has surged to $3,660 per ounce as investors seek safety amid the ongoing U.S.-China trade tensions, prompting many to abandon Bitcoin for gold.

Funds are rapidly flowing into gold ETFs, which now hold assets worth $150 billion, dwarfing Bitcoin ETFs, which lag at $93 billion. When uncertainty looms, gold’s historical trust keeps it in the lead.

🚨🇨🇳 BREAKING: China has sold 15,000 bitcoins to acquire record amounts of gold. — Legitimate Targets (@LegitTargets) Twitter on April 17, 2025

Bitcoin’s narrative as a safe haven is faltering. Currently trading at $85,000, it has dropped 20% from its $109,000 high in January, struggling to match gold’s resilience during market turmoil.

This decline correlates with Bitcoin’s increasing synchronization with U.S. tech stocks, undermining its potential safe-haven role. According to a recent report by JP Morgan: “Bitcoin has failed to benefit from safe haven flows that have bolstered gold lately.”

The trade conflict initiated by Trump has positioned gold as a safety net, leaving Bitcoin on the sidelines. Elevated tariffs, inflation concerns, and disrupted supply chains have caused a resurgence in gold’s appeal, firmly placing Bitcoin’s safe haven position on hold.

Despite this, some investors believe Bitcoin is poised for recovery. Historically, when gold appreciates, Bitcoin typically follows with greater momentum. Analysts from 99Bitcoins predict a sharp rise for Bitcoin later in 2025, with projections soaring as high as $200,000.

Key Insights

• Gold’s current peak price is $3,660, attracting investors to its safety during the U.S.-China trade war.
• Bitcoin’s narrative as a safe haven is declining, with a significant price drop from January levels.
• The ongoing debate over cryptocurrency’s role in the financial landscape in America continues.