The perceived notion of Bitcoin (BTC) as digital gold has been put to the test amid recent global trade tensions. Market pundits had predicted that investors would turn to the premier cryptocurrency as macroeconomic conditions impact stock markets. However, the reality has been quite different.
Ki Young Ju, the founder and CEO of on-chain analytics platform CryptoQuant, argued in a recent post that, contrary to popular belief, Bitcoin hasn’t achieved the status of digital gold yet. Despite this, he sees a positive aspect in the current scenario.
Bitcoin has often been referred to as digital gold due to its security, limited supply, and its purported role as a store of value – characteristics that it shares with gold, which has a limited supply that bolsters its worth as a long-term wealth store.
When global economic unrest began in February, spurred by trade tariffs imposed by former U.S. President Donald Trump, many market gurus believed that BTC would witness a substantial capital inflow as investors moved from the stock market to cryptocurrencies.
Even Arthur Hayes, the co-founder of crypto derivatives exchange BitMEX, speculated that the economic turmoil resulting from Trump’s tariffs would trigger a monetary easing cycle that would be advantageous for BTC.
Yet, while the market waits for these predictions to materialize, cryptocurrencies have taken as much of a hit as stocks in the last two months, with BTC experiencing its steepest correction in this cycle.
Ju argued that tariff experts have been “playing 6D chess” since these macro issues surfaced. He suggested that such uncertainties fuel demand for safe-haven assets, implying that BTC is not yet viewed as one. Proof of this is that gold has risen by 11% since Trump left office, while BTC has fallen more than 25% in the same period.
Despite Bitcoin’s uncertain status as digital gold, Ju maintains that BTC will eventually exceed gold’s $20 trillion market cap. Bitcoin’s market cap currently stands at $1.6 trillion.
The CryptoQuant CEO also asserted that BTC has entered a bear phase but remains optimistic about the asset’s long-term potential.
Ju’s short-term bearish outlook for BTC supports his earlier assertion that the cryptocurrency has concluded its bull run for this cycle. Less than a month ago, he stated that all on-chain metrics indicate that BTC is in a bear market, and investors should brace for 6-12 months of bearish or sideways price movements, particularly as fresh liquidity dwindles.
