The post Gold Surpasses Bitcoin as Preferred Safe Haven Amid Rising Trade War Tensions appeared on BitcoinEthereumNews.com.

The latest trends indicate that as geopolitical tensions rise, institutional investors are increasingly favoring gold over Bitcoin for stability. Bitcoin’s perceived volatility and liquidity challenges are major factors contributing to its declining status as a safe haven amid ongoing economic uncertainty. “When 58% of fund managers say gold is the top performer in a trade war, it signifies a mental shift towards more traditionally recognized assets,” stated financial expert Nicole Smith from COINOTAG. Many fund managers now prefer gold over Bitcoin as a safe haven during economic turmoil, reflecting a significant shift in investment strategies. Gold Reigns Supreme as Institutional Safe Haven The Bank of America survey results have unveiled a stark truth: amidst the turmoil of trade wars and economic challenges, gold is the clear preference among institutional investors. With 58% favoring gold as the optimal choice, Bitcoin’s struggle for recognition as a safe asset becomes apparent. The gravitation towards gold shows its historic resilience and adaptability during crises. Institutional Perspectives on Bitcoin’s Volatility Institutional hesitation regarding Bitcoin primarily stems from its inherent volatility. Although Bitcoin was initially promoted as a hedge against economic disruptions, fund managers cite its fluctuating nature and lack of liquidity during high-stress periods as critical disadvantages. This apprehension is particularly significant given the backdrop of rising geopolitical instability, coupled with the surge in the US deficit, now projected to exceed $1.8 trillion. “Investors view gold as an established store of value, providing a physically tangible asset in uncertain times,” added a financial analyst at Bank of America. Conversely, Bitcoin’s inability to command the same level of trust signals that the cryptocurrency may yet have a long road ahead to prove its dominance. This survey encapsulates the shifting landscape where long-held beliefs about crypto investing face intense scrutiny during challenging market conditions. The questions surrounding…

---

Filed under: News - @ March 30, 2025 12:20 pm