The debate over whether Bitcoin can replace gold as a safe-haven asset has resurfaced during the Iran conflict, but analysts warn it is too early to draw conclusions.
Bitcoin fell to around $63,000 during the early phase of the U.S.-Israel-Iran war while gold surged to a record $5,414 per ounce, before both assets later pulled back as market conditions shifted.
Despite Bitcoin recovering above $70,000 and trading near $68,969 on March 26, analysts say short-term price movements reflect market dynamics rather than a structural shift in investor behaviour.
“Bitcoin has been in a bear market and the price consolidated around the $70,000 mark,”
Said GraniteShares CEO Will Rhind, adding that gold’s rally reversed on fears of inflation and higher rates.
“I think this has much less to do with the Iran war and a little more about just portfolio rotation,”
Said Bloomberg Intelligence ETF analyst Eric Balchunas, pointing to traders rotating out of gold after its strong run.
Analysts say Bitcoin’s recent strength is being driven by internal market factors including improved sentiment, portfolio rotation and roughly $2.5 billion in ETF inflows over the past month.
Both Rhind and Balchunas caution that Bitcoin still behaves like a risk asset and lacks the long-established credibility of gold, reinforcing the case for diversification rather than choosing one over the other.
At the time of reporting, Bitcoin price was $68,907.87.