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Gold has once again proven its resilience as a safe-haven asset, reaching a new all-time high of $2,942.70 per ounce on Tuesday, February 11. The surge comes amid growing market concerns following President Trump’s tariff announcement, driving investors toward traditionally stable assets.
Meanwhile, Bitcoin’s status as “digital gold” is being challenged, with critics like Peter Schiff questioning its reliability as a store of value during times of economic uncertainty. As gold cements its dominance, the debate over whether Bitcoin can truly rival the precious metal continues to intensify.
Let’s explore what’s fueling gold’s rally and whether Bitcoin can hold its ground as a safe-haven asset.
Gold Maintains Its Safe-Haven Status Amid Market Uncertainty
On February 11, gold soared to a new all-time high of $2,942.70 per ounce, driven by investor concerns over President Trump’s tariff announcement and its potential impact on global trade. While the price later pulled back to just above $2,900, the brief surge pushed gold’s year-to-date gains close to 11%.
According to Reuters, profit-taking contributed to gold’s slight decline, yet market sentiment remains bullish. Investors continue to see gold as a reliable safe-haven asset, especially in times of economic uncertainty.
Kyle Rodda, a financial market analyst at Capital.com, explained how trade tensions are fueling demand: “The risk of a global trade war is driving financial markets to seek exposure to gold as part of a broader de-dollarization strategy.” He also noted that buyers importing gold into the U.S. to circumvent potential tariffs are largely indifferent to price fluctuations.
Source: create.vista.com
Bitcoin’s Safe-Haven Narrative Faces Scrutiny
While gold strengthened its position, Bitcoin—often compared to gold as a store of value—saw a 2% decline, dropping from $98,000 to $95,000 on the same day. This pullback challenges the narrative that Bitcoin can serve as a hedge against economic instability in the same way gold does.
Longtime gold advocate and Bitcoin skeptic Peter Schiff used this price movement to argue against Bitcoin’s claim as “digital gold.” In a post on X (formerly Twitter), he pointed out that Bitcoin’s market cap relative to gold has declined over time:
“In 2021, when Bitcoin hit $69,000, its market cap was 10.72% of gold’s market cap. Today, even at $98K, it has fallen to 9.95%. If Bitcoin is the new gold, why has it become less significant compared to gold over the past four years?”
Beyond criticizing Bitcoin, Schiff also called out Wall Street and U.S. media, accusing them of downplaying gold’s remarkable performance. He quipped that gold’s detractors are “quickly discovering that gold is one of the few metals that doesn’t tarnish.”
As market uncertainty lingers, the battle between gold and Bitcoin as the ultimate safe-haven asset continues, with investors watching closely for the next big move.
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