Bitcoin has declined following Israel’s airstrikes on Iran, while gold has seen an increase, reigniting debate over Bitcoin’s safe haven status.
Specifically, Bitcoin experienced renewed volatility on Friday following a significant geopolitical escalation, as Israel launched airstrikes on Iran. The conflict, which led to sharp moves across global markets, triggered a pullback in major cryptocurrencies, including Bitcoin.
Bitcoin briefly dropped below $103,000 before recovering slightly to trade at $103,964, marking a 3.66% decline in 24 hours. The largest crypto had maintained levels above $107,000 since June 9 but failed to sustain gains amid growing geopolitical tensions.
Alongside Bitcoin, Ethereum also registered sharp losses, dropping as much as 7.6% at one point during the session.
Bitcoin Critics React After Gold Outperformed
Meanwhile, traditional safe haven assets like gold and oil saw gains. Gold climbed to $3,421, an increase of $38.60 or 1.14%, while oil prices jumped by 5%, signaling investors’ shift toward perceived safer assets.
This divergence fueled renewed criticism of Bitcoin’s ability to serve as a hedge during macroeconomic uncertainty. Former Chief Market Strategist Gil Morales argued that the price reaction exposed Bitcoin’s nature as a speculative asset rather than an alternative store of value. He likened its behavior to that of a tech stock, stating that in a risk-off environment, Bitcoin declines like any other risk asset.
How Could Anyone Consider Bitcoin?
The contrasting movements of Bitcoin and gold reignited already running debates around the narrative of Bitcoin as “digital gold.” Peter Schiff, Chief Economist and a long-time Bitcoin critic, pointed to market reactions as evidence that investors still turn to physical gold in times of crisis.
Israel attacks Iran. Oil prices jump 5% while S&P futures fall 1.5%. In response, investors seeking a safe haven buy gold, sending its price up 0.85%. Meanwhile, investors dump Bitcoin, pushing its price down 2%. How can anyone consider Bitcoin to be a digital version of gold?
— Peter Schiff (@PeterSchiff) June 13, 2025
Schiff noted that while the S&P 500 futures dropped by 1.5%, and oil surged, gold’s price rose as expected. In contrast, Bitcoin saw a sell-off. As a result, Schiff questioned:
“How could anyone consider Bitcoin as a digital version of gold?”
Some market participants countered this argument by highlighting logistical challenges in trading physical gold. They claimed that selling gold through platforms like JM Bullion can result in significant transaction costs, up to 10% when factoring in shipping and insurance.
Others criticized gold’s limited utility in the digital era, arguing that Bitcoin, despite recent declines, remains more adaptable and efficient. Schiff, however, disputed the cost claim, stating that selling gold should not incur such high expenses.
Further Bitcoin Backlash Despite Historical Bitcoin Outperformance
As the market digested the broader implications of the Israel-Iran conflict, additional criticism surfaced regarding Bitcoin’s market behavior during crises.
Jacob King, CEO of WhaleWire, argued that Bitcoin historically performs poorly during geopolitical or economic shocks.
War erupts in the Middle East between Iran and Israel — and Bitcoin crashes like dead weight.
The truth is, Bitcoin isn’t a safe haven. It thrives only in calm markets, propped up by Tether-fueled speculation and artificial demand.
Whenever real crises hit — whether it’s… pic.twitter.com/rx2XNgp8Hh
— Jacob King (@JacobKinge) June 13, 2025
He attributed this to speculative demand and emphasized that Bitcoin thrives only in stable markets.
Bitcoin Maxis Still Exist
Despite the criticisms, comparisons between Bitcoin and gold have remained a central theme. A user cited historical price growth as a reason to consider Bitcoin superior, noting Bitcoin’s rise from $0.30 in 2011 to over $112,000 in 2025. In contrast, gold rose from $1,150 to a range between $2,838 and $3,375 over the same period.
Moments before this turmoil, Mike Novogratz, CEO of Galaxy Digital, predicted that Bitcoin could eventually reach $1 million, driven by rising institutional demand. Speaking on CNBC, he said Bitcoin is gaining status as a macro asset, now viewed alongside gold, silver, and major indexes like the S&P 500.
He pointed to reduced global confidence in the U.S. dollar and BlackRock’s involvement as key factors accelerating this shift.