Gold has continued its steady ascent in 2025, recently hitting a record high of $3,200 per ounce. The precious metal has gained nearly 15% since the start of the year, underscoring its traditional role as a store of value during times of economic uncertainty. In contrast, Bitcoin has experienced significant volatility. After dropping below $75,000 earlier this week, it has rebounded to around $82,000. However, the cryptocurrency remains down 12% year-to-date.
Economist and long-time Bitcoin critic Peter Schiff sounded alarms over the current market trajectory, especially as the U.S. 10-year Treasury yield approaches the critical 4.5% level. In a post on X (formerly Twitter), Schiff warned that a break above this threshold could trigger widespread financial instability.
Meanwhile, the strength of the U.S. dollar has begun to wane, stock futures are in decline, and traditional bond behavior is shifting in unexpected ways. Amid an acute sell-off in the $29 trillion U.S. Treasury market, bonds — typically considered a safe haven in times of economic and geopolitical tension — are seeing yields rise instead of fall. This inverse response signals a potential loss of confidence in U.S. government debt.
Compounding these concerns is China’s recent decision to offload large quantities of U.S. Treasury bills while ramping up gold reserves, suggesting a strategic pivot away from dollar-denominated assets.
This shift in sentiment has also brought renewed attention to Bitcoin. Despite its short-term struggles, the digital asset appears to be regaining favor among major investors. Blockchain analytics firm Santiment reported a notable increase in whale accumulation following former President Donald Trump’s announcement of a 90-day pause on tariffs. In just 24 hours, 132 new wallets holding 10 or more BTC were created — a signal of rising confidence among high-stakes holders.
As the U.S.-China trade war escalates and traditional financial instruments come under pressure, the battle between gold and Bitcoin as the premier safe haven asset intensifies. With market volatility on the rise, the coming months could determine which store of value investors trust more amid global uncertainty.
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