Can Bitcoin overtake gold as the ultimate safe-haven asset?

The early months of 2025 have proven tough indeed for the stock market. After the newly elected POTUS Donald Trump was sworn in in late January, he quickly raised the issue of tariffs on imports to the US, a key pledge from his election campaign. The market reacted nervously, with the S&P 500 and Nasdaq-100 dropping 10% and 14% (respectively) between February 20 and March 12, some of the steepest declines for equities in many years.

Bitcoin (BTC) joined the stock market during the February-March slump, shedding about 18% of its value. Needless to say, the ultimate safe-haven asset, gold, gained handsomely during the slump, as often happens during periods of uncertainty and stock market corrections or crashes.

However, another major stressor awaited the markets in April 2025. Trump's “Liberation Day” executive order imposing across-the-board import tariffs on most countries ignited another sell-off in equities. Barely coming to their senses after the February-March knockdown, US stocks absorbed another major hit. Yet, on this occasion, Bitcoin reacted altogether differently — the world's leading cryptocurrency rallied strongly after April 7, posting a completely divergent performance from that of the stock market.

Bitcoin's April rally, which is continuing into early May, has led many analysts and investors to ask a novel question: Has BTC become a new kind of safe-haven asset that can protect your investment during stock market declines? And if so, can Bitcoin actually overtake gold as the safe-haven asset of choice? In this article, we’ll examine the Bitcoin vs. gold comparison through the lens of an investor looking for the optimal safe-haven asset, for now and for future bear markets in equities, which some analysts believe will be in abundance under the current White House administration.

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