Safe

Bitcoin

Gold

<h3 id="key-points">Key Points:</h3>
<ul>
 <li>Experts say the Bitcoin versus gold narrative is still premature</li>
 <li>Will Rhind focuses on cycles, while Eric Balchunas focuses on flows and sentiment</li>
 <li>Both agree that diversification is the smartest strategy</li>
</ul>
The recent outperformance of <a rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> over gold, especially during the Middle Eastern conflict, has reignited a familiar debate over whether “King Crypto” will eventually replace gold as a safe-haven asset.
During the <a href="https://www.thestreet.com/crypto/markets/markets-digest-trumps-peace-plan-after-iran-sets-new-terms-for-ending-war" rel="noopener noreferrer nofollow">U.S.-Israel-Iran war</a>, Bitcoin fell to as low as $63,000 in the early days, while gold climbed to record highs. On March 2, gold touched $5,414 per ounce.&nbsp;
But over the last couple of days, Bitcoin has held above $70,000, although at press time on March 26, it was trading near&nbsp;$68,969,&nbsp;down 2.2% over the past 24 hours.&nbsp;
Meanwhile, gold&nbsp;traded&nbsp;near $4,439 per ounce,&nbsp;also down 2.2% overnight.
<a href="https://www.thestreet.com/crypto/markets/rich-dad-poor-dad-author-has-blunt-take-on-gold-rally-amid-iran-war" rel="noopener noreferrer nofollow">Related: 'Rich Dad Poor Dad' author has blunt take on gold rally amid Iran war</a>
But according to Will Rhind, founder and CEO of Granite Shares, it is far too early to draw conclusions.
<blockquote>
 "Bitcoin has been in a bear market and the price consolidated around the $70,000 mark. Gold was at a historic all time high and sold off after the news started on fears that a major oil shock would drive inflation and interest rates back up again."
</blockquote>
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, agrees&nbsp;on one key point: investors should not “read too much” into short-term moves.
<blockquote>
 "I think this has much less to do with the Iran war and a little more about just portfolio rotation. I think some of the traders who do momentum trading, they were like, look, gold, we had a nice run. Bitcoin's been beaten up. Let's do a little rotation into Bitcoin."
</blockquote>
He added that gold’s pre-war rally had been overstretched, prompting profit-taking as prices climbed.
<h2 id="what-s-really-driving-bitcoin-s-strength">What’s really driving Bitcoin’s strength?</h2>
Analysts, who spoke to TheStreet <a rel="noopener noreferrer nofollow">Roundtable</a>,&nbsp;say the answer lies in market dynamics rather than geopolitics.
Rhind views Bitcoin’s recent behavior largely through a market-cycle lens, noting that heavy selling above $100,000 led to a natural correction. He describes the current phase as “a natural cyclical correction&nbsp;rather than a terminal decline.”
Balchunas, however, leans toward market mechanics and flows. He highlights portfolio rotation, improved sentiment and ETF inflows as key drivers. According to him, Bitcoin’s rebound has more to do with internal market dynamics.
<blockquote>
 "People who were the ETF investors, frankly, have been very disciplined anyway. And so there's been $2.5 billion in flows in the last month...Bitcoin ETFs are quickly becoming a big deal in their market, and I think they're very important for sentiment too. So yeah, I think the ETFs helped."
</blockquote>
<h3 id="most-popular-on-thestreet-roundtable">Most popular on TheStreet Roundtable:</h3>
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 <li><a href="https://www.thestreet.com/crypto/investing/5-star-analyst-sets-massive-150000-target-for-bitcoin" rel="noopener noreferrer nofollow">5-star analyst sets massive $150,000 target for Bitcoin</a></li>
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</ul>
<h2 id="safe-haven-debate-still-unresolved">Safe haven debate still unresolved</h2>
Both Rhind and Balchunas push back on the idea that Bitcoin has already replaced gold, albeit with different emphases.
Rhind suggests Bitcoin still needs stronger “belief” and upward momentum to be considered a true safe haven.
Balchunas is more direct.&nbsp;
“I wouldn’t buy Bitcoin as a hedge in a geopolitical shock,” he said, noting that Bitcoin still behaves more like a risk asset and is often correlated with stocks.
At the same time, he acknowledges Bitcoin’s long-term potential, calling it an asset with “a seat at the table.”
Gold, on the other hand, benefits from centuries of trust. As Balchunas puts it, gold’s history is “no joke,” reinforcing its staying power.
<a href="https://www.thestreet.com/crypto/markets/bitcoins-role-amid-rate-cuts-risk-asset-or-digital-gold" rel="noopener noreferrer nofollow">Related: Bitcoin’s role amid rate cuts: risk asset or digital gold?</a>
<h2 id="diversification-always-wins">Diversification always wins</h2>
Despite their differences,&nbsp;both analysts agree on one point: diversification matters.
Balchunas emphasizes this strongly, arguing that unpredictable correlations make it risky to rely on a single asset. Gold, he notes, is “a great diversifier, but an unreliable hedge,” while Bitcoin adds a different kind of exposure.
Rhind echoes this more quietly, highlighting that investor bases for gold and Bitcoin are often polarized, reinforcing the case for holding both.
<blockquote>
 "There, of course, is some crossover, i.e., investors that hold both, but opinion tends to polarize one way or another, so those that like gold will not be convinced to buy Bitcoin and vice versa," he added.
</blockquote>
Balchunas concludes that investors shouldn’t react to headlines or short-term narratives but focus on why they hold these assets in the first place.
<a href="https://www.thestreet.com/crypto/markets/why-bitcoin-is-being-added-to-portfolios-from-billionaires-to-tech-giants" rel="noopener noreferrer nofollow">Related: Why Bitcoin is being added to portfolios, from billionaires to tech giants</a>

Bloomberg analyst warns against overreading Bitcoin and gold debate amid Iran war

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