Gold vs. Bitcoin: Divergent Roles in Market Volatility

Recent shifts in U.S. policy under the Trump administration have sparked debate about gold’s traditional status as a safe haven asset during market volatility. According to experts like André Dragosch, Head of European Research at Bitwise Asset Management, gold benefits most as a hedge during stock market declines, while Bitcoin demonstrates greater resilience when U.S. bonds face pressure. Historical data and industry studies corroborate these findings; historical data shows gold tends to rise in bear markets, while Bitcoin excels during treasury sell-offs. 2025 data reveals gold prices have soared by over 30%, while Bitcoin has gained approximately 16.46%. This divergence reflects the distinct roles each asset plays as investors navigate rising interest rates, fluctuating stock markets and President Trump’s favorable stance on cryptocurrencies.