Bitcoin's reputation as a reliable safe-haven asset has been put to the test in recent months. Data shows that when global tensions rise, investors tend to flock to traditional gold as a way to hedge against risk. Meanwhile, Bitcoin's value plummets.
This trend is not new; Bitcoin has consistently failed to live up to its promise of 'digital gold' during times of crisis. Even proponents of the cryptocurrency admit that it doesn't behave like gold.
Analysts point out that Bitcoin's performance is more in line with high-risk growth assets, such as tech stocks. This means that investors should approach Bitcoin with caution and not rely on it as a safe-haven investment.