When geopolitical situations suddenly change and market risk sentiment sharply rises, traditional safe-haven assets and cryptocurrencies tend to follow very different trajectories. This is not a coincidence, but is determined by the intrinsic properties of these two asset classes.

**Gold’s Resilience**

When war breaks out, gold immediately becomes popular. There is a logic behind this—global funds, seeing risks approaching, rush to buy this “hard currency” that has been recognized for thousands of years. During the escalation of conflicts in 2025, gold prices once surged above a historic high of $3,400. Central banks, large institutional investors, and conservative retail investors all flocked to the gold market at the same time. Its relatively moderate volatility, thanks to its stability, makes it the top choice for a safe haven.

**Bitcoin’s Dilemma**

Ironically, although hailed as “digital gold,” Bitcoin often chooses to run first when war alarms sound. Why? Because it is inherently a high-risk asset. When conflict news breaks, panic selling ensues. Traders with leverage rush to close positions and convert to cash. The 24/7 trading nature of Bitcoin becomes a disadvantage—making it the first asset investors sell off. Historical data shows that after conflict news is announced, Bitcoin can drop 3-7% within a few hours. Of course, once the situation eases, it begins to climb slowly again.

**The contrast is clear**: when war starts, gold soars while Bitcoin initially dips then jumps. This reflects the market’s true choices under extreme risk.