Bitcoin Behaves Like an “ATM” While Gold Holds Its Ground
Bitcoin, often called “digital gold” and praised for its sound, censorship-resistant properties, is acting more like an “ATM” during periods of market stress, with investors selling it quickly to raise cash.
Recent geopolitical tensions—including Trump’s threats of tariffs on NATO allies over Greenland and speculation of potential military action in the Arctic—have heightened volatility. Since January 18, Bitcoin has dropped 6.6%, while gold has surged 8.6% to nearly $5,000 per ounce.
The difference comes down to how each asset functions under stress. Bitcoin’s constant trading, deep liquidity, and instant settlement make it easy to offload, whereas gold, though less liquid, tends to be retained. “Liquidity preference dominates in times of uncertainty, and this hurts Bitcoin more than gold,” said Greg Cipolaro, NYDIG’s Global Head of Research. “Bitcoin is often sold reflexively as leverage is unwound, while gold acts as a true liquidity sink.”
Large holders amplify this effect. Central banks continue to accumulate gold, while long-term Bitcoin holders are moving coins to exchanges, creating a steady supply of selling that suppresses price.
Risk perception also plays a role. Gold is preferred for immediate shocks such as war, tariffs, or market panic, whereas Bitcoin is better suited for long-term risks like fiat debasement or slow erosion of trust. “As long as current threats are seen as temporary, gold remains the go-to hedge,” Cipolaro said.
In practice, Bitcoin provides liquidity in crises, but gold continues to dominate as a safe-haven asset.
