Gold prices skyrocketed while Bitcoin (BTC) slipped sharply as geopolitical tensions escalated.
Investors are rushing to traditional assets to oppose financial losses, suggesting they are increasing concerns about the safe state of Bitcoin.
Gold is approaching a new high amid the Israeli-Iran war
Crypto Markets crashed, recording a liquidation that reached $1 billion after Israel’s latest attack on Iran. At the time of this writing, Bitcoin was trading at $104,830, down almost 3% over the past 24 hours.
Similarly, Ethereum prices crashed 10% after the attack, exacerbating liquidation.
In contrast, gold is rising. It is approaching new highs as precious metals try to regain their position as a reliable shelter during geopolitical stress.
“The worsening geopolitical situation has caused a surge in gold prices,” noted Stock Analyst Mary.
She emphasized that key support levels were $3,420, $3,402 and $3,380. Breaks above $3,440 could potentially move towards the $3,468-$3,493 range during US sessions. At the time of writing, gold was trading at $3,422.
Gold prices could be high as tensions between Israel and Iran threaten escalation. In particular, following Israel’s attacks on Iran’s nuclear sites and military leaders, Iran warned of a “fatal” response.
Worse, the US and North Korea seem to be on their side. Meanwhile, North Korea reportedly has pledged military support to Iran. The country is condemning Israel’s actions, demonstrating the need for a military response.
The pamphlet, a Soviet national media outlet, pointed out that North Korean President Kim Jong Un, was a matter of freedom. Kim previously called Israel a cancer and a threat to world peace.
In particular, Iran is a member of SCO, a mutual defense treaty that includes China and Russia. Against this backdrop, Beijing calls for Israeli attacks on Iran, citing violating international law.
Meanwhile, despite vested interests in diplomacy, the United States appears to be with Israel. CNN reported that Trump said he did not want to target Iran to Israel as negotiations on a potential nuclear deal continue.
“I want to agree with Iran. We’re pretty close to the agreement. … As long as I think there’s an agreement, it blows it off, so it might actually help it, but it might be possible to blow it off,” CNN quoted Trump.
The report links political anchor bullet bears to Trump is claimss Supports Israel.
This suggests that Trump may announce something different later today. Nevertheless, Iran has pledged to raise the red flag of revenge, revenge.
The red flag is associated with Shia Islamic mourning and martialism. However, after the 2020 US drone strike that killed prominent Iranian military leader General Qasem Soleimani, the red flag was raised as a symbol of revenge. This practice is linked to the Supreme Leader’s call for retribution.
A safe haven where risk-off sentiment is dominantly reexamined
The rising crisis has encouraged severe differences in asset performance. Gold is rising sharply while the code is bleeding. Analysts warn traders to monitor for signs that weaken bullish momentum. This is especially true when trading sessions in Europe cannot maintain strength.
“The geopolitical situation is unstable and the brothers must have strict control over the suspension losses when trading independently,” analyst Mary warned.
The sentiment shift supports gold compared to Bitcoin, consistent with recent remarks from Maasin Kazmiertzak. The Redstone co-founder and COO told Beincrypto that Bitcoin may not be ready to replace gold and bonds with shelters.
“With a correlation ranging from -0.2 to 0.4, Bitcoin shows a volatility relationship with stocks rather than providing the consistent negative correlation required for effective portfolio protection,” Kazumiertzak told Beincrypto in an interview.
He said that Bitcoin can add diversity to its portfolio, but it does not guarantee that it will protect it from market crashes.
While some crypto advocates have argued that Bitcoin is digital gold, recent price actions suggest that it still behaves like an asset at high risk of acute uncertainty.
As tensions escalate and markets react, the contrast between gold rise and Bitcoin retreats shapes a new narrative about safe, at-home assets.
Investors show their preference for the historic safety of precious metals against the volatility of digital assets in times of crisis.
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