Critics Challenge Bitcoin Safe Haven Claims as BTC Slumps Amid Israel’s Airstrikes on Iran
The post Critics Challenge Bitcoin Safe Haven Claims as BTC Slumps Amid Israel’s Airstrikes on Iran appeared on BitcoinEthereumNews.com.
Bitcoin has declined following Israel’s airstrikes on Iran, while gold has seen an increase, reigniting debate over Bitcoin’s safe haven status. Specifically, Bitcoin experienced renewed volatility on Friday following a significant geopolitical escalation, as Israel launched airstrikes on Iran. The conflict, which led to sharp moves across global markets, triggered a pullback in major cryptocurrencies, including Bitcoin. Bitcoin briefly dropped below $103,000 before recovering slightly to trade at $103,964, marking a 3.66% decline in 24 hours. The largest crypto had maintained levels above $107,000 since June 9 but failed to sustain gains amid growing geopolitical tensions. Alongside Bitcoin, Ethereum also registered sharp losses, dropping as much as 7.6% at one point during the session. Bitcoin Critics React After Gold Outperformed Meanwhile, traditional safe haven assets like gold and oil saw gains. Gold climbed to $3,421, an increase of $38.60 or 1.14%, while oil prices jumped by 5%, signaling investors’ shift toward perceived safer assets. This divergence fueled renewed criticism of Bitcoin’s ability to serve as a hedge during macroeconomic uncertainty. Former Chief Market Strategist Gil Morales argued that the price reaction exposed Bitcoin’s nature as a speculative asset rather than an alternative store of value. He likened its behavior to that of a tech stock, stating that in a risk-off environment, Bitcoin declines like any other risk asset. How Could Anyone Consider Bitcoin? The contrasting movements of Bitcoin and gold reignited already running debates around the narrative of Bitcoin as “digital gold.” Peter Schiff, Chief Economist and a long-time Bitcoin critic, pointed to market reactions as evidence that investors still turn to physical gold in times of crisis. Israel attacks Iran. Oil prices jump 5% while S&P futures fall 1.5%. In response, investors seeking a safe haven buy gold, sending its price up 0.85%. Meanwhile, investors dump Bitcoin, pushing its…
Filed under: News - @ June 13, 2025 10:26 am