DeutschFor a long time, Bitcoin was seen as the promise of a new financial world. Independent of states, protected from inflation, a safe haven in uncertain times. But with the recent price drop, this narrative is starting to crack. Of all times, the old question is being asked again: What is Bitcoin exactly—and what is it not?
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. For a limited time only: €26 bonus when you sign up via CoinPro.ch
The Australian newspaper “Sydney Morning Herald” draws a clear line. Bitcoin is not “digital gold,” the paper writes, looking back at the past few months. The price development has shown that the cryptocurrency behaves differently than many supporters claim. Bitcoin has failed to convince as either a protection against inflation or a hedge against geopolitical risks or currency devaluation. While gold reached new highs in a market environment characterized by uncertainty, Bitcoin came under pressure.
Why Bitcoin is suddenly losing its myth
The comparison hits a sensitive spot in the crypto debate. Gold has functioned as a crisis currency for centuries, supported by physical scarcity and global trust. Bitcoin, on the other hand, lives on expectations, technology, and the hope for future acceptance. In stable market phases, this can be an advantage. In turbulent times, it acts like an amplifier for nervousness.
The “Sydney Morning Herald” also points to the political dimension. Donald Trump once called Bitcoin “digital gold” and announced his intention to make the US the “crypto capital of the world.” A strategic crypto reserve made up of seized holdings was intended to underscore this signal. But political support is no substitute for market mechanics. When liquidity fades and risk aversion rises, speculative assets are often the first to be sold.
Interesting: Bitcoin crisis: Why it means the end for miners
This is exactly the pattern that seems to have emerged recently. The sell-off of the past few months cannot be reduced to a single trigger. Rising interest rates, uncertainty in the stock markets, and profit-taking by institutional investors are considered possible factors. In addition, there is a structural problem: Bitcoin continues to react strongly to global liquidity. If this falls, the price often drops as well.
BTC is not “digital gold”
This calls the narrative of the digital safe haven into question. Because an asset that falls along with risk assets during stress phases does not fulfill the classic function of gold. At the same time, this does not mean that Bitcoin has failed. Rather, it shows that the cryptocurrency remains its own asset class—somewhere between technology, speculation, and ideological conviction.
That is precisely the irony. Bitcoin was created to be independent of the traditional financial system. Today, it often moves in lockstep with that very system. For investors, this makes categorization more difficult, but also more honest. The myth is giving way to the reality of a young market that is still searching for its role.
Already heard? FTX drama continues: SBF suddenly fights for a new trial
Whether Bitcoin will one day actually develop the characteristics of digital gold remains to be seen. The market decides this, not political slogans or buzzwords. The only thing that is certain is that the recent period of weakness has shown that trust in the crypto world can grow quickly—and is just as quickly put to the test. (mck)
