Bloomberg "Investors Choose Gold Over Bitcoin Amid Geopolitical Tensions"

Bitcoin, which showed a strong performance last year, is underperforming compared to Gold this year. This is because investors are flocking to the traditional safe asset, Gold, amid heightened geopolitical tensions following U.S. President Donald Trump's 'Gaza Strip occupation' remarks.

On the 7th (local time), Bloomberg reported, "While Bitcoin has only risen 3% this year, Gold has surged 9%, reaching an all-time high of $2,882 per ounce."

Following President Trump's statement that "the U.S. could occupy the Gaza Strip," the rise in Gold has been notable. In contrast, Bitcoin remains about 10% below its annual high. Currently, Bitcoin is trading at around $96,600 on the Binance Tether (USDT) market, down 0.45% from the previous day.

Bitcoin has been evaluated as a store of value similar to Gold due to its limited supply. However, it is pointed out that it is not fully performing that role in the current situation. On the other hand, Gold continues to hold its position as a strong safe asset amid economic uncertainties such as the U.S.-China trade war and tariff threats.

Aoifinn Devitt, Chief Investment Advisor at Moneta Group, said in an interview with Bloomberg TV, "Bitcoin can be considered a hedge against fiat currencies. However, in the current market, its appeal is diminished due to high dollar demand," adding, "Over time, Bitcoin may develop its own characteristics, but for now, it is still considered a high-risk asset."

Nevertheless, Bitcoin supporters expect that over time, the unique characteristics of virtual assets will be recognized as a store of value. Paul Howard, Director at market-making firm Winsent, predicted, "The emergence of Exchange Traded Funds (ETFs) that invest directly in Bitcoin will gradually reduce volatility and attract more investor funds."