Bitcoin (BTC) and gold emerge as top safe havens as crypto fear and greed index remains in the fear zone

The Swiss franc and gold have emerged as the top safe havens as the crypto fear and greed index remained in the fear zone.

Crypto fear and greed index remained in the fear zone as Swiss franc and gold emerged as the top safe havens.

The USD/CHF exchange rate has fallen sharply from its highest point this year, while gold hit a record high of $3,243. The precious metal has jumped by more than 37.50% in the last 12 months. In contrast, Bitcoin, which is often seen as a safe haven, fell sharply by almost 10% in the current year.

Bitcoin price falls as gold and Swiss franc rise

Its performance mirrors that of other risky assets like the S&P 500 and Nasdaq 100 index. Most notably, the US dollar and bonds did not become the safe havens they were in the past. The US dollar index has plunged for the third consecutive day, and it is now trading at its lowest swing since September 2022.

It fell by almost 10% from its highest level this year, which signals that it is approaching a correction.

The Swiss franc has become a better safe haven than Bitcoin due to the strength and stability of the country’s economy. Unlike the US and countries in the European Union, Switzerland is neutral on many issues. Switzerland also has one of the strongest economies with little debt.

Therefore, analysts expect that the currency is a better alternative to the US dollar and other risky assets. In a note to BanklessTimes, an analyst from Cube Exchange said:

“The Swiss franc is one of the best currencies to have. Switzerland has a GDP of almost $900 billion and less than $300 billion in debt. It also holds almost $300 billion of US debt, which it can easily liquidate.”

Gold has a long history as a safe haven

Gold is a superior safe haven due to its long-standing historical role. It has been a safe haven for centuries and experiences robust demand from institutional investors and central banks from countries like Russia and China.

In a note, an analyst at Goldman Sachs (NYSE:GS) enhanced its gold price forecast, stating:

“Recent flows have surprised to the upside, likely reflecting renewed investor demand in hedging against recession risk and declines in risk asset prices.”

Still, some analysts note that Bitcoin is holding up well as risks rise and the fear and greed index tumbles. Besides, Bitcoin price has dropped by 8.5% this year compared to the Nasdaq 100 index, which has dropped by 11.15%. It has also outperformed the S&P 500 index, which fell by 9%.

Some analysts consider Bitcoin as a safe haven due to its substantial institutional demand as Blackrock and Strategy continue buying. They also note its limited supply and rising mining difficulty.