Bitcoin’s (BTC) reputation as digital gold has come under scrutiny following investors’ reaction to the ongoing trade tensions between the United States and other countries. Market experts anticipated a scenario where participants would flock to the leading cryptocurrency as macro conditions affect stocks; however, the opposite has been the case.
Ki Young Ju, the founder and CEO of the on-chain analytics platform CryptoQuant, insisted in an X post that, against popular opinion, bitcoin is not yet digital gold. However, he sees a silver lining in this situation.
Not Digital Gold Yet
Bitcoin has been named digital gold because of its security, limited supply, and generally believed role as a store of value. These characteristics are similar to gold’s, which has a finite supply that enhances its value as a long-term store of wealth.
As global economic tensions, triggered by trade tariffs imposed by U.S. President Donald Trump, began in February, many market experts believed BTC would record a significant inflow of capital due to investors leaving the stock market for cryptocurrencies.
Even Arthur Hayes, the co-founder of the crypto derivatives exchange BitMEX, thinks the economic chaos stemming from Trump’s tariffs would lead to a monetary easing cycle that will be bullish for BTC.
While the market awaits the manifestation of such predictions, cryptocurrencies have been hit just as hard as stocks in the past two months, with BTC recording its deepest correction in this cycle.
Ju said tariff experts on X have been “playing 6D chess” since the macro issues began. He explained that uncertainties like this drive demand for safe-haven assets, insinuating that BTC is not seen as such yet. Proof of the CryptoQuant founder’s opinion is that gold has surged by 11% since Trump returned to the White House, while BTC is down more than 25% over the same period.
BTC Now in Bear Season
Despite bitcoin’s questionable status as digital gold, Ju believes the good news is that BTC will eventually surpass gold’s $20 trillion market cap. The cryptocurrency’s market cap currently sits at $1.6 trillion.
Additionally, the CryptoQuant CEO insisted that BTC has entered a bearish phase but is still bullish about the asset’s long-term potential.
Ju’s short-term bearish bias for BTC substantiates his claim that the cryptocurrency has wrapped up its bull run for this cycle. Less than a month ago, he said every on-chain metric signals that BTC is in a bear market, so investors should expect 6-12 months of bearish or sideways price action, especially with fresh liquidity drying up.
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