Bitcoin’s long-standing reputation as "digital gold" is facing one of its biggest challenges yet. As market volatility intensifies and economic uncertainty looms, investors are seeking safety—not in Bitcoin, but in traditional safe-haven assets like gold and bonds.

A Market in Turmoil

April 2 is shaping up to be a pivotal moment for global markets. U.S. President Donald Trump has dubbed it “Liberation Day” as new tariffs—exceeding 20%—will take effect on imports from over 25 countries. According to The Wall Street Journal, the administration is also considering expanding these tariffs further, extending economic uncertainty well beyond this initial wave.

Markets have already reacted negatively. Over the past week, the S&P 500 has fallen 3.5%, and the Nasdaq 100 has dropped 5%, signaling rising investor anxiety. Meanwhile, gold has surged 4%, reaching an all-time high of $3,150 per ounce. The 10-year Treasury yield has fallen to 4.2%, indicating a classic flight to safety.

In contrast, Bitcoin has dropped 6%. While its decline is relatively modest given its historical volatility, its performance raises questions about its reliability as a hedge in times of crisis.

Gold and Bonds Lead the Safe-Haven Charge

Traditionally, during periods of macroeconomic and geopolitical instability, investors flock to assets that offer stability and yield. This time is no different.

Gold is experiencing a historic rally. Over the past two months, more than $12 billion has flowed into gold funds—the largest surge since 2020, according to Bloomberg. Year-to-date, gold prices have risen nearly 17%, while the S&P 500 has declined by 5%. Meanwhile, U.S. consumer sentiment has plummeted to levels last seen during the 2008 financial crisis, with only 37.4% of Americans expecting stock prices to rise over the next year.

As The Kobeissi Letter succinctly put it:

“An economic slowdown has clearly begun.”

Bitcoin: Safe Haven or Tech Stock?

Despite being dubbed “digital gold,” Bitcoin is still behaving more like a high-growth tech stock than a safe-haven asset. A Matrixport analysis shows that BlackRock’s spot Bitcoin ETF (IBIT) has a 70% correlation with the Nasdaq 100—a level reached only twice before. This suggests that Bitcoin’s short-term movements are still heavily influenced by macroeconomic trends, much like traditional tech stocks.

ETF data supports this argument. After a strong period of inflows, spot Bitcoin ETFs saw a net outflow of $93 million on March 28, according to CoinGlass. Total Bitcoin ETP assets under management have dropped to $114.5 billion, their lowest level in 2025.

The numbers suggest that Bitcoin is still largely perceived as a speculative asset rather than a stable store of value. However, signs of a shift are emerging.

Bitcoin’s Evolution Into a Reserve Asset

While Bitcoin’s price remains volatile, its adoption as a treasury reserve asset is growing. More corporations are adding Bitcoin to their balance sheets, signaling a slow but steady shift toward institutional acceptance.

According to TipRanks, 80.8% of BlackRock’s IBIT shares are owned by public companies and individual investors. In February 2025, BlackRock even incorporated a 1% to 2% allocation of IBIT into its target allocation portfolios—a significant step toward mainstream institutional adoption.

Data from BitcoinTreasuries shows that publicly listed companies now hold 665,618 BTC, while private firms hold another 424,130 BTC. Combined, that’s 1,089,748 BTC—approximately 5.5% of Bitcoin’s total circulating supply (excluding lost coins).

Looking ahead, some experts predict that corporate Bitcoin holdings will become commonplace. Elliot Chun, a partner at crypto M&A firm Architect Partners, recently wrote:

“I anticipate that by 2030, a quarter of the S&P 500 will have BTC somewhere on their balance sheets as a long-term asset.”

The Road Ahead

Bitcoin is still in transition. While it’s not yet a full-fledged safe haven, its growing presence in corporate and institutional portfolios suggests that its role as a reserve asset will continue to expand.

For now, Bitcoin’s price remains largely driven by speculation. But if adoption continues at its current pace, its volatility may decrease, making it a more viable hedge against economic uncertainty in the future.

The “safe haven” label may not fully apply to Bitcoin today—but if the current trajectory holds, it may not be long before it does.