Bitcoin's position as digital gold has been questioned by the market's response to global economic tensions. Experts believe that bitcoin is not a safe asset yet and has entered a downward phase, but it has a bright future in the long run.
Bitcoin's (BTC) credibility as "digital gold" has been questioned following investor reactions to ongoing trade tensions between the United States and other countries. Market experts expected investors to turn to the leading digital currency, bitcoin, as the macroeconomic situation affects the stock market, but the opposite of this forecast occurred.
In a post on social network X, Ki yongju, founder and CEO of Anchin cryptoquant analytics platform, stressed that, contrary to popular belief, bitcoin is not digital gold yet. However, he believes that there is something promising in this situation.
Bitcoin is not digital gold yet.
Bitcoin has been called digital gold because of its security, limited supply and potential role as a store of value. These characteristics are similar to those of gold, known as long-term reserves of wealth due to the limited resources.
As global economic tensions began in February with trade tariffs imposed by the then president of the United States, Donald Trump, many market experts expected investors to withdraw their capital from the stock market and enter the digital currency market.
Arthur Hayes, co-founder of the crypto exchange BitMEX, once predicted with confidence that Trump’s trade tariffs would throw the global economy into turmoil, pushing central banks toward looser monetary policies. In his view, this environment would be perfect for Bitcoin to flourish.
But the market hasn’t played along.
In the past two months, instead of rising as a hedge or safe haven, cryptocurrencies have fallen right alongside traditional assets. Bitcoin, the most recognized name in the space, has seen its steepest price correction of the current cycle — shaking investor confidence and raising fresh questions about how and when the crypto narrative will regain its momentum.
In his post on X, yongju said that tariff experts "played six-dimensional chess"during this time. He explained that under uncertainty, demand for safe assets usually increases, suggesting that bitcoin is not yet recognized as a safe asset. To prove his point of view, he noted that since Trump's return to the White House, gold prices have risen by 11 percent, while bitcoin has fallen by more than 25 percent.
Bitcoin has entered a downward season.
Although Bitcoin's position as digital gold is questioned, Young ju believes the good news is that bitcoin will eventually exceed the market value of 20 trillion in gold. The cryptocurrency currently has a market value of about 1.6 trillion.
He also stressed that bitcoin has entered a downward phase, but remains optimistic about its long-term future.
Yongju's short-term downward view of bitcoin echoes his earlier comments that bitcoin has ended its upward cycle. Less than a month ago, he announced that all of Anchin's metrics show that bitcoin has entered the downward market, and investors should expect 6 to 12 months of downward movement or neutral trend, especially in situations where new liquidity does not enter the market.
