Gold goes up, Bitcoin goes up and down! Is "digital gold" a false name?

Under the sudden escalation of the situation in Ukraine, the global financial market is turbulent, and a large number of funds are eager to seek a "sense of security".

On February 24, spot gold once stood at the $1,970/oz mark, hitting an 18-month high. On February 25, the price of gold stabilized after the sharp fluctuations in the previous trading day. As of press time, the spot gold price was $1,914.1 per ounce, up 0.58% from the opening price. However, the market generally expects that the price of gold is expected to open an upward channel.

On the other hand, Bitcoin, known as "digital gold", has been disappointing. On February 24, the price of Bitcoin once again fell below $35,000 per piece, with an intra-day drop of more than 10%, which was almost halved from its historical high of $68,928.9 per piece on November 10 last year. On February 25, Bitcoin once again showed its "nature" of ups and downs, and rebounded in shocks. As of 20:30 that day, the price of Bitcoin rose by more than $3,400 to 38,857.9 per piece, an increase of nearly 10%.

However, looking at the long-term perspective, Bitcoin entered a volatile downward channel after hitting an all-time high price, and is currently experiencing its longest decline since 2018. According to Wind data, since 2022 alone, Bitcoin has fallen by about 20%, and its performance ranks last among the world's major asset classes. In stark contrast, Bitcoin rose nearly 60% last year, and its performance is second to none among the world's major asset classes.

For a long time, many investors have been optimistic about the future performance of Bitcoin, but in the long downward cycle, "belief" will inevitably be shaken. Some investors admitted to reporters that they "have no idea" about Bitcoin now.

In an interview with reporters, a number of industry insiders bluntly stated that the recent performance of Bitcoin shows that its hedging properties no longer exist, and it may become a bubble asset in the future. However, some market analysts said that as the market panic dissipates, Bitcoin will even stage a shocking reversal.

Is "digital gold" just a gimmick?

Only when faced with a real crisis can the safe-haven properties of so-called "safe-haven assets" be truly verified.

With the escalation of the situation in Ukraine, the safe-haven properties of traditional safe-haven assets such as gold have become more prominent, while the performance of Bitcoin is difficult to support its reputation as "digital gold".

Sun Yulin, a senior researcher at the Ouke Cloud Chain Research Institute, told reporters that with the escalation of the situation in Ukraine, the price of bitcoin assets plunged sharply. "Bitcoin was once called 'encrypted gold', but now with the changes in Ukraine, the safe-haven property of this asset no longer exists. The European and American stock markets plummeted and gold soared, making gold's property as a safe-haven asset further obscured. strengthen."