Bitcoin's Reputation as Digital Gold Faces Scrutiny as Its Price Struggles Amidst Global Economic Tensions

Bitcoin's reputation as digital gold is facing scrutiny as its price struggles amidst global economic tensions. Contrary to the gold price, Bitcoin had been expected to perform

Bitcoin's reputation as digital gold is coming into question as its price struggles amid global economic tensions. Unlike gold, which has risen in 2024, Bitcoin has been expected to perform like a safe-haven asset but has substantiated its plunge. This differential showcases Bitcoin's volatility, coupled with a consistent correlation with risk assets, which puts its reliability to serve as a store of value into question when compared to gold.

As all market experts weigh in, the long-term viability of Bitcoin price remains a subject of debate-there are experts who claim it may one day exceed gold in market capitalization.

BTC vs Gold: The Debate Over Digital Gold Intensifies in 2025

A new chapter in the long-standing argument of Bitcoin vs Gold as a preferred haven asset is written in 2025 amid worldwide economic pressures. Bitcoin, the cryptocurrency juggernaut known for its limited supply and technological innovation, has at least not been able to replicate some of the steadiness of physical gold during hardship periods. While the bitcoin price plummeted 25% since the beginning of this year, gold’s price increased more than 11%, strengthening its position as a store of value. According to the experts, the volatility of Bitcoin and its tendency to correlate with risk assets such as equities - all of these have gone against Bitcoin’s haven appeal.

In contrast, how extreme price fluctuations come about and the fact that Bitcoin has recently gone bearish raised new questions over its capability for consistently providing protection during adverse markets. The ultimate question raised by these two conflicting animations: Will Bitcoin now be able to fulfill the role of gold as a safe haven asset? The narrative here for Bitcoin is very strong with increasing institutional acceptance and technology development; however, gold remains a stronger candidate with universal acceptance and stability. The ongoing economic tensions mark the BTC vs Gold debate as a cue into the dynamic transformation of new-age investment paradigms.

Bitcoin Price Trend of April 12, 2025

The trading session of bitcoin represents a very isolated area within which Bitcoin prices were allowed to move up and down. Right at the session, the Relative Strength Index was indicating an oversold condition, whereupon Bitcoin price found support near the $82,765 level. The Moving Average Convergence Divergence showed multiple Golden Crosses and Death Crosses on the chart, indicating consecutive changes in momentum. The Golden Crosses were occurred at 03:20 UTC, 11:00 UTC, and 17:40 UTC, sending the price into resistance around $86,092 again.

Chart 1, analysed by Anushri Varshney, published on TradingView, April 13, 2025

On the flip side, the Death Crosses at 01:45 UTC on April 13 pressured prices downward to the support level, whereas the RSI was reaching overbought status time after time after the Golden Cross, suggesting strong demand. As it stands, Bitcoin is trading at about $84,444.36. According to technical analysis, if the latest Death Cross continues and the decline remains, further testing of the support level may take place. Conversely, a turnaround may see a retest of resistance near $86,078.

Future Prospects Of Bitcoin

Market analysts are divided regarding the future direction of the primary cryptocurrency, currently experiencing bearishness. It is undeniable that despite occasional volatility, many experts feel very positive about the distant future of BTC vs Gold, predicting a price rise. Some forecasts consider even $250,000 a possibility for December 2025, backed by arguments for institutional adoption and regulatory clarity. Others point out that macroeconomic uncertainties and regulatory pressures may lead to another bearish phase for Bitcoin. The debate as to whether BTC vs Gold is a better safe-haven asset continues, and the interrogation into whether Bitcoin truly deserves the name digital gold continues.