As of May 7, 2025, Three Fiat Currencies—the Swiss Franc (CHF), Japanese Yen (JPY), and Euro (EUR)—Are Exhibiting Stronger Safe-Haven Characteristics Than Bitcoin. This Shift Reflects Investor Responses to Global Economic Unc

May 7, 2025 - Three fiat currencies—the Swiss franc (CHF), Japanese yen (JPY), and euro (EUR)—exhibited stronger safe-haven characteristics than Bitcoin (BTC) in the past month, signaling investor responses to global economic uncertainties.

Swiss Franc vs Bitcoin: Safe-Haven Currencies’ Demand Surges in May 2025

The Swiss franc (CHF) continues to outperform Bitcoin (BTC) as a safe-haven asset, with May 2025 data reinforcing investor preference for traditional stability. The CHF index recently surged to 121.59, marking a new multi-year high. On the same chart, the 50-week exponential moving average (EMA) stood at 114.40, confirming the franc’s strong upward momentum. This rally came as global investors fled riskier assets in response to rising trade tensions under Trump’s renewed tariff policies, which were covered in a recent EU Report.

At the same time, Bitcoin traded around $96,901—recovering slightly but still down from its March peak near $107,000. The contrast between these two assets is striking when they are placed side-by-side. The second chart shows Bitcoin’s historic volatility. Sharp spikes and drawdowns dominate its path, while the CHF/USD line remains steady, anchored around 1.2153. Investors seeking capital preservation amid inflation concerns and geopolitical pressure chose CHF over BTC throughout April and early May.

This shift does not rely on speculation. In April alone, the franc gained over 9% against the U.S. dollar—the strongest monthly rise since the 2008 financial crisis. The appreciation followed Trump’s unpredictable trade decisions, which redirected capital away from U.S. assets and into neutral currencies. Switzerland’s low national debt, strict financial policies, and credible central bank support the franc’s strength. Even as the Swiss National Bank weighs interest rate cuts to protect exports, the franc continues to attract safe-haven demand.

At the same time, Bitcoin’s image as “digital gold” continues to weaken. Its high correlation with tech stocks and other risk-sensitive assets challenges its reputation as a store of value. Despite steady institutional interest, Bitcoin has not shown the same price stability as gold or the Swiss franc. Ongoing regulatory uncertainty in both the U.S. and EU limits its appeal among cautious investors.

Japanese Yen vs BTC: JPY Rallies as Traders Flee Risk Assets

The Japanese yen (JPY) strengthened in 2025 as global markets faced increasing uncertainty. On May 7, the JPY Currency Index reached 765.8, climbing 0.71% for the week. The USD/JPY pair traded at 0.006896, up 1.2% from the previous week. The 50-week exponential moving average stood at 0.006693, showing that the yen had broken above key resistance levels.

Back in March 2025, during a tech-sector sell-off, USD/JPY dropped from 152 to 145. The move reflected an immediate shift into the yen as traders exited risky positions. Japan’s near-zero interest rates continue to make the yen attractive in global carry trades. When volatility rises, investors unwind these trades, boosting demand for JPY.

The Bank of Japan has kept policy unchanged, avoiding rate hikes. This has maintained the yen’s role as a funding currency. At the same time, geopolitical tension and Trump’s 2025 tariff measures pushed more capital into defensive assets. Investors moved funds into JPY-denominated markets seeking currency stability.

On the same day, Bitcoin traded at $96,953. While BTC posted a 2.8% gain, it showed no clear link to broader safe-haven flows. Bitcoin’s price action remained highly volatile, reacting to speculative moves rather than macroeconomic pressure.

The yen’s steady rise followed direct capital inflows and low-yield positioning. Bitcoin, in contrast, delivered unstable price swings that failed to offer protection during recent equity drawdowns. This divergence confirms that JPY continues to act as a practical hedge when market risk intensifies.

Euro vs Bitcoin: EUR Emerges as a Safe-Haven Currency Amid Dollar Weakness

The euro (EUR) also gained strength in 2025 as institutional investors shifted away from the U.S. dollar amid rising fiscal instability in the United States. The EUR/USD exchange rate reached 1.1345 on May 7, up 4.26% over the past month. Meanwhile, the Euro Currency Index (EXY) rose to 113.51, trading well above its 50-day exponential moving average of 110.60.