Gold Takes Lead Over Bitcoin as Safe Haven in Trump’s 2025 Tariff Shock

YEREVAN (CoinChapter.com) — A Bank of America survey reveals that 58% of institutional investors prefer gold as a safe haven asset in trade war scenarios. Only 3% support Bitcoin in that role. The data highlights a clear gap in confidence between traditional assets and digital ones.

The same survey shows that 30-year Treasury bonds also lag behind gold, receiving just 9% support. The findings show that institutional investors are reallocating their funds, favoring gold over both Bitcoin and U.S. bonds. The shift comes during a period of economic uncertainty under Donald Trump’s second term.

This reallocation has resulted in a surge in gold allocation flows, while Bitcoin continues to face skepticism from major funds.

Between January and March 2025, gold rose 18.38% while Bitcoin fell 16.58%, reflecting investor movement toward safer assets during rising economic tensions.

Bitcoin Volatility Limits Institutional Adoption

Despite Bitcoin’s fixed supply, institutional adoption remains limited. Key barriers include Bitcoin volatility and the lack of immediate liquidity during crises. This limits its role as a safe haven asset in moments of high risk.

The U.S. deficit, expected to reach $1.8 trillion, has weakened trust in traditional financial tools like Treasury bonds and the U.S. dollar. One trader said,

“This is what happens when the global reserve currency no longer behaves as the global reserve currency.”

Still, institutions are not turning to Bitcoin. Instead, they are increasing their gold holdings and turning away from riskier or less liquid options.

President Donald Trump is set to introduce new tariffs on April 2, an event referred to by some as “Liberation Day.” The date is expected to cause high market volatility, similar to previous election nights or Federal Open Market Committee (FOMC) announcements.

As these Trump tariffs 2025 approach, investors are positioning early. Historical data shows trade tensions lead to more capital moving into safe haven assets, especially gold.

Trader Alex Krüger noted that

“April 2nd is similar to election night… 10x more important than any FOMC,”

underlining the potential for market movement. Investors appear to be acting in advance by shifting capital into gold and away from Bitcoin and other risk-sensitive assets.

Gold vs Bitcoin: Institutional Flow Favors Traditional Asset

The contrast in asset preference is backed by trading behavior. Institutions are purchasing physical gold at record levels. Meanwhile, Bitcoin remains outside the core safe haven strategy for most major funds.

Trader Billy AU said,

“Gold’s no longer just a hedge against inflation; it’s being treated as the hedge against everything… geopolitical risk, de-globalization, fiscal dysfunction, and now, weaponized trade.”

He added that when 58% of fund managers choose gold, and both long bonds and the U.S. dollar fall behind, it signals a major change in the financial playbook.

The gold vs Bitcoin debate continues, but data shows a clear winner in the current environment. Institutional investors are not treating Bitcoin as a safe haven asset at the level seen with gold.

Bitcoin ETFs Not Enough to Drive Institutional Confidence

Although Bitcoin exchange-traded funds (ETFs) gained traction earlier in the year, they have not translated into long-term safe haven demand. Analyst Kyle Chassé explained,

“The ETF demand was real, but some of it was purely for arbitrage… There was a genuine demand for owning BTC, just not as much as we were led to believe.”

This further reflects the gap between Bitcoin’s perceived long-term value and its actual adoption during financial stress. For now, Bitcoin safe haven narratives remain under pressure from real-world allocation decisions.

The use of gold as a politically neutral, liquid, and accepted store of value continues to dominate institutional strategy. As a result, gold holds the top position in the safe haven asset category during this period of global uncertainty.