According to Odaily Planet Daily, due to the growing tensions in the Middle East, the prices of commodities such as gold and crude oil have risen. However, the price of Bitcoin has fallen, triggering new discussions on whether it is a safe-haven asset.
Li Xing, a financial market strategy consultant at Exness, said that the conflict in the Middle East has prompted investors to seek safety in gold, enhancing its appeal. Jeroen Blokland, founder of Blokland Smart Multi-Asset Fund, believes that investors are selling Bitcoin to buy gold.
Precious metals analyst Jesse Colombo said Bitcoin and cryptocurrencies always fall when there are geopolitical concerns, confirming his long-held belief that cryptocurrencies are not safe havens but just another risk asset.
U.S. technology stocks fell sharply on Tuesday, with Apple and Nvidia shares falling about 3% and the Nasdaq 100 index falling more than 2%.
BlackRock CEO Larry Fink said Bitcoin could still be an alternative inflation hedge asset. Markus Thielen, head of research at 10x Research, said Bitcoin was originally designed as a peer-to-peer electronic cash system, not a safe-haven asset.
He added that Bitcoin is still in its maturation stage and has not yet fully transitioned to its potential role as a gold substitute, which he believes could happen if governments ban individuals from holding gold. Until then, Bitcoin's price will continue to be affected by economic and liquidity cycles, and the current economic outlook remains weak.
